Renowned YouTuber and crypto analyst PlanB shared insights into his Bitcoin price prediction, utilizing seven key charts to support his forecast.Â
The first chart discussed was the Stock-to-Flow (S2F) model, a known indicator for price projections. The analyst cited three key insights deducible from the S2F model about Bitcoin’s future price.Â
S2F Suggests a $532k Model Value
First, PlanB highlighted that the model value after the Bitcoin halving, per the S2F model, is $532,000. Elaborating on the target, the analyst pointed out that Bitcoin’s price has historically aligned with the model value following 2012, 2016, and 2020 halving.Â
According to him, it is particularly true when the market dynamics transition from the accumulation phase to the bull market phase. A similar trend is observed to be gradually playing out for 2024.
According to PlanB, the current model value is between $50,000 and $60,000. He anticipates a gradual increase in Bitcoin’s price leading to the April 2024 halving to mirror the model value.
Bitcoin Market Cycle Model
The second chart PlanB discussed was the Bitcoin Market Cycle Model (MCM). He described it as a detection model indicating the different phases in Bitcoin’s market cycle.
The MCM suggested Bitcoin is currently in the accumulation phase, with a transition to the bull market phase the next in line.
According to the analyst, earlier bull markets experienced 100x returns, though the rate of return has diminished in recent cycles.
Despite this, PlanB expressed confidence in a substantial tenfold return in Bitcoin, citing the relatively low adoption rate of 2-3%. Moreover, he cited Metcalfe’s law that diminishing returns are not expected until Bitcoin surpasses 50% adoption.
Bitcoin RSIÂ
PlanB’s third discussed chart was a technical analysis chart, the Relative Strength Index (RSI). This tool reveals momentum, indicating overbought and oversold situations, symbolizing greed and fear in the market.
It essentially acts as a gauge for bull and bear markets, representing the two extremes of emotion in trading.
PlanB draws two significant insights from this chart. Firstly, he anticipates an uptrend in the next four months leading to the halving.
Secondly, after the halving, the chart indicates the possibility of encountering high RSI values, suggesting a steep uptrend. However, the chart provided no specifics on how high this uptrend might go.
Other Charts
Other charts the analyst highlighted include Bitcoin’s 200-week moving average (200WMA), Bitcoin realized price, Bitcoin holders in profit, and Bitcoin stock-to-flow trading rule.Â
In essence, each of these charts collectively indicated a positive momentum, both leading up to and following the April 2024 halving.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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