Pseudonymous analyst Rekt Capital believes that Bitcoin (BTC) is currently undervalued, with more potential for upside based on a benchmark indicator known as the Pi Cycle top indicator. This indicator utilizes the 111-day moving average (DMA) and a multiple of the 350 DMA to assess the market trend of Bitcoin. According to Rekt Capital, historical data suggests that when the price of Bitcoin trades below the 111 DMA, it has been a good opportunity for BTC bulls to buy. This deviation below the moving average is currently happening for the first time in 2024, indicating a potential buying opportunity for investors.
In the past, deviations below the orange moving average have been favorable buying opportunities for Bitcoin, leading to significant price increases. During the 2017 halving year, holding the 111 DMA was crucial for investors looking to capitalize on market movements. Rekt Capital believes that the current deviation below the orange moving average could represent a moment of extreme fear and capitulation on the sell side, potentially leading to a significant upside for Bitcoin in the near future. Historically, revisits of the green moving average have resulted in rejection initially, but breaking beyond this level on the second or third attempt has led to further gains for Bitcoin.
As of the time of writing, Bitcoin is trading at $63,278, indicating a relatively stable price range for the cryptocurrency. For those interested in staying updated on Bitcoin and other cryptocurrency news, subscribing to email alerts or following social media channels like X, Facebook, and Telegram can provide real-time updates on market trends and potential buying opportunities. By remaining informed and monitoring key indicators like the Pi Cycle top indicator, investors can make better-informed decisions when it comes to trading Bitcoin and other cryptocurrencies.
In conclusion, the Pi Cycle top indicator suggests that Bitcoin is currently undervalued, with a potential opportunity for investors to buy at a bargain price. Historical data indicates that holding the 111 DMA during halving years has been significant for Bitcoin bulls, leading to substantial gains in the past. While deviations below the orange moving average may signal moments of fear and capitulation, they have historically been excellent buying opportunities for investors looking to capitalize on market movements. By staying informed and monitoring key indicators like the Pi Cycle top indicator, investors can position themselves to take advantage of potential upside in the Bitcoin market and make informed trading decisions.