- Renowned cryptocurrency analyst, PlanB, predicts a potential surge in Bitcoin’s price, based on historical data and the stock-to-flow (S2F) model.
- According to PlanB, Bitcoin miner revenue typically recovers between two and five months following a halving, after which the Bitcoin price tends to go “vertical.”
- The analyst’s predictions align with historical trends, with Bitcoin miner revenue and the relative strength index (RSI) often peaking in the months following a halving.
PlanB, a well-known cryptocurrency analyst, predicts a potential surge in Bitcoin’s price based on historical data and the stock-to-flow model. The analyst suggests that Bitcoin miner revenue typically recovers between two and five months following a halving, leading to a significant increase in Bitcoin’s price.
PlanB’s Predictions Based on the Stock-to-Flow Model
PlanB, widely recognized in the crypto community for his stock-to-flow (S2F) model for predicting Bitcoin’s price, recently shared on the microblogging platform X (formerly known as Twitter) that historical data shows Bitcoin miner revenue takes between two and five months to recover after a halving. He further stated, “after that bitcoin price goes vertical.”
Historical Trends Align with PlanB’s Analysis
PlanB’s analysis aligns with historical trends. Bitcoin miner revenue has demonstrably grown over time, with peaks often occurring in the months following a halving. This rise in revenue often coincides with a high relative strength index (RSI), an indicator of potential buying pressure.
PlanB’s Predictions for Bitcoin’s Future
PlanB has predicted that the price of Bitcoin could reach $500,000 this year based on key technical indicators and their past influence on the cryptocurrency price. He noted that Bitcoin’s relative strength index (RSI), a technical indicator meant to chart the current and historical strength or weakness of an asset‘s recent price changes, appears to be mirroring a historical pattern that in the past indicated major price surges.
Interpreting the Data and Anticipating Market Volatility
PlanB elaborated on his interpretation of the data, stating that as we approach Bitcoin’s halving event, which will cut the supply of newly created tokens in half next year, its RSI is moving up. Per his words we “should be prepared for market volatility,” and a direct ascent is “unlikely.” The analyst noted that if the pattern holds, he anticipates a bullish surge in 2024 with the RSI hovering around 90, while in 2025 and 2026 he sees the cryptocurrency endure a bearish trend.
Conclusion
PlanB’s analysis offers a potentially optimistic outlook for Bitcoin’s future, suggesting a possible surge in price following the upcoming halving event. However, he also cautions investors to be prepared for market volatility and the possibility of a bearish trend in the years following the predicted surge. As always, investors should carefully consider all available data and market trends before making investment decisions.
