Anonymous analyst PlanB shared a new Bitcoin analysis chart on X today, hinting at bullish expectations for Bitcoin’s future price. The chart shows Bitcoin’s relative strength indicator (RSI), market cap to realized market cap ratio (MVRV), and the “#AsymmetricBets” tag, all providing intriguing information.
The term "AsymmetricBets" is composed of "Asymmetric" (asymmetry) and "Bets" (bets), and is used to describe investments where the potential returns are far greater than the possible losses. In other words, risk a small loss to potentially make a large profit. Finding asymmetric risk and reward opportunities in capital markets is considered the Holy Grail, but it is not easy, requires risk management measures, counterintuitive thinking, and is not suitable for emotionally unstable investors.
PlanB combines the MVRV ratio with the RSI indicator in this chart to provide investors with a perspective on when to buy and sell Bitcoin. For example, a high RSI and high MVRV could indicate an overheated market, while a low RSI and low MVRV could be a buy signal.
In this regard, netizen Pieter compared the past trend chart of this chart and speculated that PlanB is suggesting that RSI and MVRV may rise further in the future, indicating that he is optimistic that Bitcoin will have further room to rise in the future.
Coupled with the "#AsymmetricBets" tag, it means that PlanB believes that the upside of investing in Bitcoin may be far greater than the downside risk.
However, it is worth noting that these indicators are not completely in sync with Bitcoin price movements. For example, when Bitcoin reached its all-time high price in late 2021, these indicators did not reach new highs. Therefore, investment analysis should comprehensively use a variety of tools and knowledge. No single chart can comprehensively explain the basis for all investment decisions.
