Markets
Bitcoin’s Classic Indicator Flashes as ‘Bargain Opportunity’ Amid Market Fear, Crypto Analyst Says
Pseudonymous analyst Rekt Capital says a leading indicator is signaling that Bitcoin (Bitcoin) is currently undervalued, with further upside potential to be captured.
In a new video update, the analyst takes a look at I wait at the upper Pi Cycle indicator, which has been used on Bitcoin for almost a decade.
The Pi Cycle Top indicator uses the 111-day moving average (DMA) and a multiple of the 350-day DMA.
According to Rekt Capital, trading prices below the 111 DMA has historically been a “bargain” opportunity for BTC bulls.
“If we think about the halving of the year, then holding this moving average (111 DMA) is quite important and we have noticed small deviations and a deviation below the orange moving average has historically been a cheap buying opportunity.
We are 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. This will likely be the time of absolute extreme fear and capitulation on the sell-side.
To the upside, we tend to see retests of the green moving average, and when we see them, we tend to reject the first time we ask. The second or third time we ask, we go above this green moving average. We will probably be able to extend beyond that, as we have seen many times in the past.”
Source: LookIntoBitcoin
At the time of writing, Bitcoin is trading at $63,278.
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