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Bitcoin: Pi Cycle Top & Bottom Indicator

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The Pi Cycle Top and Bottom Oscillator modifies the original Pi Cycle Top chart by comparing Bitcoin's 111-Day Moving Average and the 2 * 350-Day Moving Average. These specific moving averages were chosen because their ratio, 350 / 111, closely approximates Pi, a significant mathematical constant.

When the 111-Day Moving Average intersects the 2 * 350-Day Moving Average, it suggests that the market might be overheating. This intersection indicates that the medium-term momentum, represented by the 111-Day Moving Average, has caught up with the longer-term momentum, represented by the 2 * 350-Day Moving Average.

This condition has historically aligned with the peak of market cycles within three days.

Conversely, when the 111-Day Moving Average drops below the 2 * 350-Day Moving Average, it signifies a substantial cooling of market momentum. At this point, the oscillator falls into the lower green band, indicating that the 111-Day Moving Average is trading at a 75% discount to the 2 * 350-Day Moving Average.

This scenario has typically marked extensive bear market lows in the past.

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