Quant analyst PlanB has given Bitcoin bulls a reason to cheer, saying that the largest cryptocurrency by market capitalization is poised for a major rally after crossing a key resistance level that historically kicks off multi-year bull markets.
PlanB, who is known for his Stock-to-Flow (S2F) model, tweeted on August 8th that BTC’s 5-month realized price has crossed the two-year realized price. This is a bullish signal that has historically preceded major bull markets for Bitcoin.
Not buying bitcoin <$30,000 now is like
Not buying bitcoin <$10,000 in 2019/2020
Not buying bitcoin <$500 in 2015/2016
Not buying bitcoin <$10 in 2011/2012
Life is all about choices pic.twitter.com/WMM02fzvp9— PlanB (@100trillionUSD) August 4, 2023
Read Also: Top Analyst Warns of a Bull Trap, States Why He Thinks Current Bitcoin Price Rally Is Unsustainable
The realized price metric measures the value of all BTC at the price they were bought divided by the number of tokens in circulation. During bull markets, the price of Bitcoin tends to remain above all of its realized prices.
PlanB also said he is bullish on Bitcoin’s Relative Strength Index (RSI), which is a momentum indicator that measures the speed and magnitude of price changes. The RSI is currently in the oversold territory, which is a sign that Bitcoin is due for a rebound.
“The RSI is setting the stage for a big rally similar to 2015,” PlanB tweeted.
At the time of press, BTC is trading at $29,481, with little or no change in price in the last 24 hours. If PlanB’s predictions are correct, Bitcoin could be on track to reach new all-time highs in the coming months or years.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
What does this mean for investors?
The crossing of the 5-month realized price and the 2-year realized price are bullish signals for Bitcoin (BTC). This suggests that the flagship crypto is on track for a major rally in the coming months or years.
PlanB’s prediction that Bitcoin will not revisit prices below $30,000 is also bullish. This suggests that the current correction is a buying opportunity and that Bitcoin is likely to continue its upward trend in the long term.
The RSI indicator is also bullish, suggesting that Bitcoin is oversold and due for a rebound.
Overall, the technical indicators are pointing to a bullish outlook for Bitcoin (BTC). Investors who are looking to buy the dip may want to consider adding Bitcoin to their portfolios.
What are the risks?
Of course, there are always risks associated with investing in Bitcoin (BTC). The cryptocurrency market is volatile and prices can fluctuate wildly. Additionally, Bitcoin is a relatively new asset class and there is no guarantee that it will continue to appreciate in value.
However, the long-term fundamentals for Bitcoin are strong. The cryptocurrency has a limited supply of 21 million tokens, which makes it an attractive store of value. Additionally, Bitcoin is becoming increasingly adopted by institutional investors and businesses.
Overall, the risks of investing in Bitcoin are outweighed by the potential rewards. Investors who are willing to take on some risk could be well-rewarded in the long run.
Follow us on Twitter, Facebook, Telegram, and Google News
