An analyst who goes by the pseudonym Rekt Capital claims that one of the leading indicators signals that Bitcoin (BTC) is currently undervalued, with potential for further gains.
In a new video update, the analyst looks at the Pi cycle upside indicator, which has been used in Bitcoin for almost a decade.
The Pi Cycle top indicator uses a 111-day moving average (DMA) and a multiple of 350 DMA.
Trading below the 111 DMA has historically been a “profitable” opportunity for BTC bulls, according to Rekt Capital.
“If we think about this halving year, holding that moving average (111 DMA) is quite important and we have seen small deviations and deviations below the orange moving average have historically been buying opportunities.
We are currently seeing such a deviation for the first time in 2024.
Throughout 2017, any deviation below the orange moving average has been a fantastic buying opportunity. This will likely be the moment of absolute extreme fear and capitulation to sell.
On the other hand, we tend to see repeat visits to the green moving average, and when we see those repeat visits, we tend to reject them the first time we ask. The second or third time we ask, we break out beyond that green moving average. We’re likely to be able to break out beyond that, as we’ve seen many times in the past.”
At the time of writing, Bitcoin is trading at $63,278.
Generated image: DALLE3
