Using ChatGPT to Understand When to Buy Pi Network (PI)
Pi Network and it’s native cryptocurrency – Pi Coin – are undoubtedly amongst the most polarizing topics within the community. Nonetheless, we’ve decided to conduct a fun experiment and use the prominent AI-based chatbot ChatGPT to understand when it would be a good time to buy PI within the current market context, of course.
The following is a conversation with ChatGPT and its arguments based on the 1-day, 4-hour, and 1-hour price charts. Let’s see how it goes.
Defining Expectations and Tuning the AI
If you’ve had any experience with ChatGPT, you will know that its data set could be lacking in certain areas. That’s why it’s important to fine tune it if you want more precise answers.
First, it’s important to define the role of the bot for the conversation. In our case, we want it to act from the standpoint of a professional analyst and crypto trader, so that’s what we tell it.
As soon as we do that, though, you can see some of its problems:
As you can see, ChatGPT doesn’t recognize PI as an officially tradeable cryptocurrency and hasn’t yet acknowledged the fact of its mainnet launch, which took place earlier this year. We had to remind it.
Okay, we’re finally on the same page. It’s sourcing price information from Binance’s page. Funnily enough, Binance is yet to list PI, if it ever will, but that’s a topic for another discussion.
Pi Network Price Analysis: ChatGPT vs. Charts
I will provide the images from the TradingView chart and ChatGPT’s answer in one edited frame so that it’s easier to navigate.
Starting with the 1-day chart.
To summarize, ChatGPT considers PI to be in a strong bearish trend since achieving its all-time high in late February and is currently in a “capitulation to accumulation” phase with key support at $0.50 – $0.52 and “extreme” support at $0.40 – $0.42. Let’s move on to the 4-hour chart.
The main conclusions from this, according to ChatGPT, are that the support zone is at around $0.52 – $0.53, which it also calls the “critical buy zone,” while the resistance is found at $0.56 – $0.58.
And now, let’s move on to the 1-hour time frame.
The takeaway from this is that the $0.52-$0.53 zone is acting as a “firm base,” while the $0.56 price point is the immediate resistance.
Best Time to Buy PI Coin?
And now, for the grand finale, let’s see what ChatGPT thinks is the best strategy and when to buy PI coin.
As you can see, the primary buy zone is at what the bot identified as the primary support zone – more or less where, the price is currently trading at around $0.52 to $0.53.
If you are patient, though, the higher-reward play, although with lower probability is to buy during conditions of extreme capitulation, which would take place if the price hits $0.42 – $0.44.
On the other hand, if you are looking for a safer play, you can wait for the price to reclaim the local resistance with volume. It’s found at $0.56.
It’s very interesting to see if this analysis will hold any ground. Of course, treat this as nothing but an experiment and keep in mind that none of what you read here is financial advice. This is just the analysis of an AI-based chatbot that had hard times identifying whether or not PI was actually listed on exchanges.
The post Using ChatGPT to Understand When to Buy Pi Network (PI) appeared first on CryptoPotato.
