Before later in the year, when its accuracy in predicting cycle tops will be seen as a manner of predicting when the 2020-21 top would occur, the Pi Cycle Top Indicator still needs to be addressed in the crypto community. Unbelievably, it succeeded, with the Pi Cycle Top Indicator crossing just a few days before Bitcoin reached its whole high of $65,000 in April. The Pi Cycle Top Indicator has become generally regarded as a predictor of the conclusion of a bull market, which might make it a self-fulfilling prophecy. The indicator has just indicated that a new Bitcoin cycle is beginning after three months of a decline.
The indicator continues to function even though those initial peaks occurred in a crypto market that is very different from the one we currently have nowadays. As it sets less after reduction throughout the bear phase, it frequently goes up against this moving average as opposition, unable to burst above it.
Pi Cycle Top Indicator Marks Bitcoin Cycles
The Pi Cycle Top Indicator is more of a correlational indicator than a causal one. Still, we can see from its present state that a new Bitcoin cycle has started since the April crash:
As we can see from historical data, every cycle high follows a bear market in which the orange line has significantly moved from the green line and the price. A bottoming out upwards and curve of the orange line, which shows that the price is going in a continued upward trend, represents the end of the bear market.
It is essential to constantly grow and improve current indicators as these tools are updated with new code over time, much like when they reach new people’s awareness of bitcoin assets. Late 2015, early 2019, and the middle of 2020 are the most recent instances. Every time, the reversal sparked a bull run, and months or even years later, the bitcoin price peaked orders of magnitude above each reversal point.
Bitcoin On the Up
Investors in bitcoin are only natural to wonder how high the price may ultimately rise. Let’s examine what has transpired after Bitcoin recovered from $39,000 over the past few weeks:
At the beginning of September, we noticed a complete shift, which is hilarious because Bitcoin was about to experience the September curse. We have begun a new Bitcoin cycle, shown by the Pi Cycle Top Indicator’s reversal and the highly positive price movement after September ended.
A run of negative economic news over the past few months has negatively affected market perception, contributing to bitcoin’s weaknesses and the recent drop. Of course, no one can predict where the Pi Cycle Top Indicator will peak this time, but the cross will probably occur somewhere north of $100,000. It also needs to be clarified whether the signal will operate as an identity prediction once more, although it would be stupid to even think about it at this stage.