In this episode of NewsBTC’s Daily Technical Analysis VideosAnd the We compare the previous Bitcoin highs and lows using the Pi Cycle Bottom and Pi Cycle Top indicator. We also delve into recent comments from John Bollinger, the creator of Bollinger Bands.
See the video below:
Video: Bitcoin (BTCUSD) Price Analysis: September 9, 2022
This video provides a detailed look at Bitcoin market cycles using the Pi Cycle Bottom indicator and other tools. A conversation between Tony “The Bull” and the founder of Bollinger Bands is also the subject of discussion and corresponding analysis.
Are Bitcoin Bottoms As Easy As Pi’s?
The Pi Cycle Bottom Indicator It launched again in July, but price action has retested its lows for the second time. Looking back through history, it’s visually clear that the instrument was fairly accurate in its upper and lower case notations.
For added reassurance, we used technical indicators such as RSI and LMACD. As a reminder, the LMACD is the logarithmic version of the MACD, which provides signals across higher timeframes that allow for a better comparison from one cycle to the next.
We ran out of bearish momentum at the exact same point in the past two market cycles on the weekly time frames, which just happened to coincide with the launch of the pi cycle bottom indicator. The RSI also reached oversold levels in both the previous cases. Put on some rotating tools, and we have what appears to be a pattern.
A historical look at past Pi cycle Bottom and Top signals. | Source: BTCUSD on TradingView.com
While everyone is incredibly bearish and expecting new lows # bitcoininstruments with a 100% pass rate indicate that the worst is past and coinciding with previous cycle lows. pic.twitter.com/mrk0zJFFhK
– Tony “The Bull” Spilotro (@tonyspilotroBTC) September 9, 2022
Checked Bollinger Bounce
The Bollinger Bands Lately they’ve been acting like presets, the most recent having bottomed out at $29K the first time around, before finally collapsing after being revisited this year.
The recent major low also had a similar bullish divergence but is less visible on the RSI. The current setup also looks similar to the October 2019 “China Pump” where Bitcoin surged more than 40% in less than 72 hours.
A move of this magnitude would lift the leading cryptocurrency by market capitalization to over $26,000 per coin by Monday noon. However, the creator of the tool, John Bollinger, Warn That the current setup lacks the ‘pressure’ necessary to ‘fake the head’ – wave-specific terms that the Bollinger Bands act in.
Is this a similar setup? | Source: BTCUSD on TradingView.com
It wasn’t adequate pressure so it couldn’t be a fake head.
But, if we go back tomorrow, it could be a good trade.
– John Bollinger (bands) September 6, 2022
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Featured image from iStockPhoto, Charts from TradingView.com