In a recent video update, the pseudonymous analyst Rekt Capital suggests that Bitcoin (BTC) is currently undervalued and has the potential for further upside. The analyst focuses on the Pi Cycle top indicator, a long-standing tool used to analyze Bitcoin’s performance.
The Pi Cycle top indicator utilizes the 111-day moving average (DMA) and a multiple of the 350 DMA. According to Rekt Capital, whenever the price of Bitcoin falls below the 111 DMA, it has historically presented a “bargain” opportunity for bullish investors. This trend has been observed throughout the years, and the current deviation from the orange moving average is the first of its kind in 2024.
Rekt Capital points out that in 2017, any deviation below the orange moving average proved to be an excellent buying opportunity. This upcoming deviation may induce extreme fear and capitulation from sellers. On the flip side, when Bitcoin begins to rise, it tends to revisit the green moving average. Initially, it may get rejected, but after several attempts, it eventually breaks through. This pattern has been observed multiple times in the past, suggesting that Bitcoin may even exceed expectations once it surpasses the green moving average.
As of now, Bitcoin is trading at $63,278. It’s worth noting that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin or other cryptocurrencies.
