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Categories: Bitcoin
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August 17, 2023

$500,000 Bitcoin (BTC) Price Now on the Table As Classic Indicator Suggests Parabolic Rally Coming: Plan B

By Daily Hodl Staff

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.

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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.

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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.”

Source: PlanB/YouTube

Bitcoin is trading for $28,813 at time of writing, down 1.2% in the last 24 hours.

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