The Pi-Cycle Top and Bottom Indicator is a popular technical analysis tool designed to identify Bitcoin’s major market cycle peaks (tops) and troughs (bottoms). It is called “Pi-Cycle” because one of its moving‐average ratios (350 / 111 ≈ 3.153) happens to be close to the number π (3.14159...). While no indicator can perfectly predict price movements, the Pi-Cycle models have historically shown uncanny timing around Bitcoin’s cyclical highs and lows.
Pi-Cycle Top Indicator Key Components:
111-Day Moving Average (MA) 350-Day Moving Average (MA) × 2 How It Works:
Plot both the 111-day MA and (350-day MA × 2) on a Bitcoin price chart. The indicator flashes a potential market cycle top signal when the 111-day MA crosses above the 350-day MA × 2. Why “Pi”?
The ratio of 350 to 111 is roughly 3.153, close to the mathematical constant π (3.14159). The original idea was that this near-π ratio appeared to coincide with market peaks in previous cycles. Historical Performance:
The Pi-Cycle Top Indicator has historically called or come very close to calling several Bitcoin cycle tops: April 2013 top December 2013 top December 2017 top April 2021 top It has sometimes signaled a top within a few days of the actual peak, though—as with any model—subsequent market conditions can deviate from historical patterns. Pi-Cycle Bottom Indicator Key Components (common version):
471-Day Moving Average (MA) 150-Day Moving Average (MA) (sometimes an EMA) multiplied by a constant factor (e.g., 0.745) (Note: Variations exist. The constants and exact lengths can differ depending on who implements the model.)
How It Works:
Plot the 471-day MA and another moving average (often the 150-day MA or 150-day EMA) scaled by a specific factor (e.g., 0.745). A potential bottom signal triggers when the scaled 150-day line crosses below (or above, depending on convention) the 471-day MA. Historical Performance:
The Pi-Cycle Bottom Indicator has, in some form, identified or come close to several historical bear-market lows. As with the Top Indicator, the Bottom Indicator is not perfect and can lag or lead actual bottom prices.