Is the Bitcoin Price Only Going to Rise?
Many people claim that “this time it’s different” when referring to financial markets. This statement often includes discussions about cryptocurrencies like Bitcoin. However, not everyone agrees with this idea. Even the Bitcoin analyst PlanB dismisses it, suggesting that the Bitcoin price will not only avoid a significant drop but will continue to rise even further.
Bitcoin Price Can Only Rise?
In a video, the former Dutch institutional investor discusses at length the Relative Strength Index (RSI) and its historical performance for Bitcoin (BTC). While this indicator is not unique and has been explained by numerous analysts, PlanB takes a distinctive approach.
The RSI measures the price’s performance compared to a certain time frame. By displaying all data points on a chart, it becomes easier to identify trends. A value below 50 indicates a downward trend, while a value above 50 suggests an upward trend in the price.
PlanB emphasizes that the RSI for Bitcoin has rarely fallen below 50 in the long term. This has been the case so far because the price has consistently risen over the past decade.
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The Bitcoin Peak Expected in Late 2024?
PlanB also considers the time Bitcoin has taken and will take until the next halving event. Interestingly, he color-codes every bottom (green and blue) before a halving event, and every RSI peak is marked in red. Currently, the indicator is light blue, suggesting that we are far from reaching the peak.
In fact, the analyst believes that the next bull market has just begun. According to his conservative estimate, the uptrend will end just below the stock-to-flow value, which is projected to be $500,000 after the halving. He estimates that the price will be around $300,000, which could be achieved between late 2024 and early 2025.
As PlanB provides this analysis, it is crucial to consider that cryptocurrency markets are highly volatile and can be influenced by various factors. This article does not serve as financial advice, but rather aims to provide insights into PlanB’s perspectives on the Bitcoin price movement.