Classic Indicator Points to Potential Parabolic Rally, Signaling a $500,000 Bitcoin (BTC) Price Ahead, According to Plan B
A Prominent Crypto Analyst Suggests Bitcoin (BTC) Price Could Reach Six Figures Within a Year Based on a Reliable Historical Indicator
In a recent strategy session, quantitative analyst PlanB shares insights with his substantial YouTube audience of 65,200 followers, indicating that Bitcoin's Relative Strength Index (RSI) is displaying a familiar pattern that has historically foreshadowed parabolic market surges.
The RSI serves as a momentum tracking tool for assets. PlanB elaborates,
"This would imply that the RSI is poised to ascend from its current level leading up to the halving event. Expect fluctuations along the way; the journey won't be linear. Subsequently, we anticipate a bullish market trend in 2024, with the RSI hovering around 90 – a slight variation above or below won't have significant impact. This would be succeeded by a bearish market phase in 2025-2026."
PlanB leverages his stock-to-flow (S2F) model to align Bitcoin's price prediction with the projected RSI pattern. Originally designed to assess precious metals' performance, the S2F model measures an asset's price against its available supply.
According to the model's insights, Bitcoin could potentially reach $60,000 in the lead-up to the anticipated April 2024 halving event, a time when BTC miners' rewards are halved. This could then be followed by a substantial surge ranging between $300,000 and $500,000.
"In terms of Bitcoin's price, the trajectory will resemble this. We're currently situated around the $30,000 level, having remained there for a considerable time. Within the RSI-based scenario I presented, this price range corresponds. It's expected to rise with fluctuations approaching the halving event, aligning with the stock-to-flow value of $60,000.
Subsequently, the bull market would intensify during its second phase, driven by FOMO (fear of missing out) and greed. As per this scenario, a relatively conservative bull market would eventually plateau slightly below or around the stock-to-flow value of $500,000. This averages out to approximately $300,000, a substantial 10-fold increase from the current state.
At the time of writing, Bitcoin is priced at $28,813, reflecting a 1.2% decrease within the past 24 hours.
Aug 17, 2023