A widely followed crypto analyst says a historically reliable indicator suggests Bitcoin’s (BTC) price may surpass six figures in about a year.
In a new strategy session, quant analyst PlanB tells his 65,200 YouTube subscribers that Bitcoin’s relative strength index (RSI) appears to be repeating a pattern that previously signaled parabolic rallies.
The RSI is an indicator that tracks the momentum of an asset.
Says PlanB,
“It would mean that the RSI is going to rise from here towards the halving. [There will be] volatility, of course. It will not be a straight line. Then a bull market in 2024 with an RSI around 90 – a little above, a little below it – it doesn’t matter. And then a bear market after that in 2025-2026.”
PlanB uses his stock-to-flow (S2F) model to predict Bitcoin’s price in alignment with the forecasted RSI pattern.
The S2F model, traditionally used to track the performance of commodities like precious metals, compares an asset’s price to its available supply.
The model indicates that Bitcoin could hit $60,000 heading into the expected April 2024 halving event, when BTC miners’ rewards are cut in half, followed by a massive move to between $300,000 and $500,000.
“And in Bitcoin price, it will look like this. So we are here at the moment at this $30,000 level, stuck for months there. And in this scenario that I just showed in RSI, this is the price that belongs to that. So it would it would rise with volatility towards the halving around the stock-to-flow value of $60,000.
And then the bull market really goes on, the second stage of the bull market with FOMO (fear of missing out) and greed, and then in this scenario, it’s a rather conservative bull market that bottoms out or flattens out just below the stock-to-flow value of $500,000. So this averages at $300,000, which is still pretty okay, I would guess. It’s 10x from here.”
Bitcoin is trading for $28,813 at time of writing, down 1.2% in the last 24 hours.
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