Indicator Overview The Pi Cycle Top Indicator has historically been effective in picking out the timing of market cycle highs to within 3 days. It uses the 111 day moving average (111DMA) and a newly created multiple of the 350 day moving average, the 350DMA x 2.
Note: The multiple is of the price values of the 350DMA not the number of days.
For the past three market cycles, when the 111DMA moves up and crosses the 350DMA x 2 we see that it coincides with the price of Bitcoin peaking.
It is also interesting to note that 350 / 111 is 3.153, which is very close to Pi = 3.142. In fact, it is the closest we can get to Pi when dividing 350 by another whole number.
It once again demonstrates the cyclical nature of Bitcoin price action over long time frames. Though in this instance it does so with a high degree of accuracy over the past 7 years.
How It Can Be Used Pi Cycle Top is useful to indicate when the market is very overheated. So overheated that the shorter term moving average, which is the 111 day moving average, has reached a x2 multiple of the 350 day moving average. Historically it has proved advantageous to sell Bitcoin at this time in Bitcoin's price cycles.
we had a pi cycle touch but then btc went on to make a higher high .....??????????
FreeFly787
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@terrybit123, Well it called the top at 65K, not at 69k. I would say, that is pretty darn accurate!
hiphopanonymousx
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yup, this does not show anything.
firefightermario
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Does not factor in MMT. The FED priniting insane amounts of money causing the velocity of BTC to rise faster. The Pi Cycle cross was calculated assuming old M2 Money velocity.