Widely followed quantitative analyst PlanB believes that Bitcoin (BTC) is in the early days of a fresh bull market.
The quant analyst tells his 1.8 million Twitter followers that Bitcoin has exited deep bear territory.
According to a chart shared by the crypto strategist, Bitcoin has been out of the late bear market stage since the beginning of 2023, and BTC is now in bull territory.
“I guess this color scheme is better because it aligns with green and red candles in Bitcoin bull and bear markets?
Stage 1: early bull <- we are here (blue)
Stage 2: late bull (green)
Stage 3: early bear (yellow)
Stage 4: late bear (red)”
Looking at Bitcoin’s technicals, PlanB highlights that the relative strength indicator (RSI) also suggests that BTC is in a bull market. In a new strategy session, the quant analyst tells his 46,500 YouTube subscribers that the momentum indicator is hovering above the 50 level, which he notes has historically marked the start of a new bull cycle.
“What you see historically if Bitcoin enters the 50 plus RSI area… it goes on, the trend goes on and a next bull market starts.”
PlanB is also responding to the critics of his stock-to-flow (S2F) trading model, which attempts to predict the performance of an asset based on the idea that the price increases as the asset becomes more scarce.
During the last bull cycle, PlanB used the S2F model to forecast that BTC will top out at around $288,000.
According to the quant analyst, he believes the S2F still remains valid even though BTC topped out at around $69,000 in 2021. PlanB says that Bitcoin’s fundamentals will eventually push the price of BTC to greater heights.
“Saying S2F model is ‘wrong/invalid/broken,’ means you think BTC price pumps after 2012, 2016, 2020 halvings (red arrows) are coincidences, random, unrelated to halvings.
Possible, but I disagree: in my opinion, 21 million cap, supply schedule, four-year halving cycle are fundamental to BTC price. 2024 will tell.”
At time of writing, Bitcoin is trading for $30,115, up over 7% in the last 24 hours.
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