Bitcoin (BTC) Set for Major Rebound as Key Indicators Flash Bullish, Says PlanB

• Bitcoin is on the verge of a substantial recovery, according to prominent analyst PlanB.
• On-chain data suggests that BTC continues to be in a bullish phase.
• PlanB highlights key metrics like the realized price and RSI to support his prediction.

PlanB anticipates a significant Bitcoin bounce as critical indicators suggest bullish momentum.

Bitcoin’s Realized Price as a Bull Market Support Level

In a recent strategy session on YouTube, PlanB, who is well-known for the stock-to-flow (S2F) model, elaborated on the realized price metric of Bitcoin. This metric captures the value of all BTC in a specific period, calculated at the price they last transacted on-chain, and is then averaged by the total BTC in circulation. According to PlanB, Bitcoin’s current situation, hovering around the five-month realized price of approximately $65,000, indicates a potential bounce back.

The Significance of Realized Price in Bull Markets

PlanB observes that Bitcoin seldom dips below this five-month realized price during bull markets, making it a strong support level. Highlighting the recent behavior of Bitcoin, he mentioned, “This light blue line, representing the five months realized price, has consistently acted as a support line in bullish cycles. Given Bitcoin is currently sitting slightly below this line, we could anticipate a rebound from this $65,000 level.”

Examining Bitcoin’s Relative Strength Index (RSI)

Another critical indicator PlanB closely monitors is Bitcoin’s Relative Strength Index (RSI), a commonly used momentum indicator that evaluates whether an asset is overbought or oversold. He confidently predicts that the RSI values in the current cycle will match the peak levels observed in previous cycles, thus foreseeing exponential returns for Bitcoin.

RSI and Future Market Behavior

PlanB’s analysis suggests that the current bull market will not show diminishing returns but rather exponential gains. He stated, “In my opinion, there will not be diminishing returns. Instead, we will observe exponential returns, with RSI values climbing above 80, akin to the cycles in 2013, 2017, and 2021. Time will ultimately reveal if this is the case.”

Conclusion

PlanB’s insights are valuable for understanding Bitcoin’s potential trajectory. With the current price hovering around $61,785 and showing a slight downward trend of over 2% in the last 24 hours, it remains to be seen whether Bitcoin will bounce back as predicted. However, the historical performance of realized price levels and RSI in previous bullish cycles provides a compelling case for PlanB’s optimistic outlook.