Bitcoin (BTC) is currently undervalued and has more potential for growth, according to pseudonymous analyst Rekt Capital. In a recent video update, the analyst explores the Pi Cycle top indicator, a tool that has been used to analyze Bitcoin for almost ten years. This indicator uses the 111-day moving average (DMA) and a multiple of the 350 DMA.

Rekt Capital explains that historically, when the price of Bitcoin falls below the 111 DMA, it presents a buying opportunity for BTC bulls. He emphasizes the significance of holding the 111 DMA during the halving year, noting that deviations below this moving average have proven to be excellent opportunities for buying in the past.

The present deviation below the orange moving average is the first occurrence in 2024. Rekt Capital points out that during 2017, any deviation below the orange moving average resulted in a fantastic buying opportunity. He predicts that the current deviation will likely trigger extreme fear and capitulation among sellers.

On the upside, Rekt Capital observes that Bitcoin tends to revisit the green moving average and initially rejects it. However, on the second or third attempt, the price typically breaks through and surpasses this level, allowing for further upward movement. He expects Bitcoin to over-extend beyond the green moving average, as it has done many times before.

As of now, Bitcoin is trading at $63,278. It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin or any other digital assets.