Bitcoin (BTC) losing over 50% in a month may have a big silver lining as lower prices set up a classic bull flag.
On Thursday, Philip Swift, creator of the Pi Cycle Top indicator, said that this year could still see a major Bitcoin price high.
BTC price drop’s saving grace?
Pi Cycle Top uses two moving averages — the 111-day and the 350-day multiplied by 2 — to determine likely market tops with an error range of just three days.
It has proven extremely accurate, and current conditions are setting up a crossover from the two averages which suggests a return to bullishness.
“The 111dma (orange line) continues to rapidly drop below the 350dma x 2 (green line),” Swift commented on Twitter.
“This is setting up another cross, and therefore potential high, in the coming months once price starts trending back up…which I believe it will.”Bitcoin Pi Cycle Top chart. Source: LookIntoBitcoin.comBitcoin price bottom close?
This provides a firm counterpoint to short-term