Crypto analyst Rekt Capital discusses Bitcoin's price dynamics using the PI Cycle Top Indicator, known for predicting bull run peaks. This tool tracks two key moving averages: a 111-day short-term average and a 350-day long-term average.
The crossover, where the short-term average surpasses the long-term, signals a bull market peak. Currently, these averages are diverging, indicating no imminent peak.
The 111-day moving average is crucial, acting as a support level during halving years and marking bargain buying opportunities in bear markets. Bitcoin trading below this average, around $59,000, suggests undervaluation.
If Bitcoin reclaims $63,900, just above the 111-day average, it could trigger upward movement, ending the current bargain buying opportunity. The 350-day average, around $96,000, may act as resistance later in the market cycle.
Historically, breaking beyond the 350-day average has led to parabolic price increases. Rekt Capital predicts that although Bitcoin is far from $96,000, it will eventually approach and possibly surpass this level, leading to rapid price increases.
For a potential bull market peak, the convergence of these two moving averages is key. A sharp price rise is needed for the crossover event to occur. Currently, Bitcoin trades at $58,695.
