Photo by Bargain Hunting: Classic Bitcoin Indicator Signals Buying Opportunity Amid Market Fear
As market fear continues to grip the cryptocurrency community, one classic Bitcoin indicator is flashing a “bargain opportunity” signal, suggesting that the largest cryptocurrency by market capitalization may be undervalued.
According to pseudonymous analyst Rekt Capital, the Pi Cycle top indicator, which has been used on Bitcoin for nearly a decade, is signaling that price trading below the 111-day moving average (DMA) has historically been a bargain buying opportunity for BTC bulls.
Pi Cycle top indicator
“Holding this moving average (111 DMA) is quite important, and we’ve seen small deviations and a deviation below the orange moving average has historically been a bargain buying opportunity,” said Rekt Capital in a recent video update.
“We’re currently seeing this deviation for the first time in 2024. Throughout 2017, any deviation below the orange moving average has been a fantastic buy-side opportunity.”
Pi Cycle top indicator deviation
The analyst notes that the current market sentiment is one of extreme fear and capitulation, which historically has been a good time to buy.
“We tend to see revisits of the green moving average, and when we do see these revisits, we tend to reject on the first time of asking. On the second time or third time of asking, we break beyond this green moving average. We’re probably going to be able to over-extend beyond there, like we’ve seen many times in the past,” said Rekt Capital.
Pi Cycle top indicator revisits
As of writing, Bitcoin is trading at $63,278, with many wondering if this is a good time to buy.
What do you think? Will Bitcoin break beyond the green moving average, or is this just another false hope? Share your thoughts in the comments below!
Will Bitcoin break beyond the green moving average?
