The Pi Cycle Top indicator was created by Philip Swift in 2019 to predict Bitcoin's top within three days. It has gained great popularity when it predicted Bitcoin's top within three days in April 2021. The indicator signals a top whenever the 111 DMA (Daily Moving Average) crosses above the 350 DMA * 2, these crossovers are shown as white dotted lines in the chart. The name "Pi Cycle Top" comes from the fact that the fraction 350/111 is as close as one can get to Pi (3.1415).

The Pi Cycle Bottom indicator was created by Doncic, who was inspired by Philip Swift's Pi Cycle Top indicator. The indicator signals a bottom whenever the 150D EMA crosses below the 471D SMA * 0.745, these crossovers are shown as white dotted lines in the chart. The name "Pi Cycle Bottom" comes from the fact that the fraction 150 * Pi (3.1415) is about 471. 

You can select the "MAs Divided" metric to see the 111DMA divided by the 350DMA * 2. Whenever this metric crosses from below 1 to above 1 is when a pi cycle top signal occurs. Likewise from above 1 to below 1 for the pi cycle bottom indicator.

Key Takeaways

This chart is mainly used for detecting local and market cycle tops for Bitcoin. However, looking at the ratio 111DMA / (350DMA * 2) shows that a ratio below 0.4 or 0.5 also signals good accumulation periods. This ratio also shows that the peaks are diminishing over time. The distribution phase in early 2021 produced a ratio that barely came above 1. If this trend continues then we might not see a Pi Cycle Top again. Instead, values close to 1 can be used to identify higher risk areas.

The Pi Cycle top produces mixed signals for other coins and one must keep in mind that it was created only for Bitcoin. The signals for ETH were inaccurate but the signals for the total crypto market cap, XRP or ONE were very accurate.