Popular cryptocurrency analyst PlanB, who is widely recognized in the crypto community, has suggested that the price of the flagship cryptocurrency Bitcoin could soon go “vertical,” based on historical data.
PlanB, known 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, and that “after that bitcoin price goes vertical.”
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.
Historically, bitcoin miner revenue recovers 2-5 months after a halving, and after that bitcoin price goes vertical🔴 pic.twitter.com/AdCQSvvsbq
— PlanB (@100trillionUSD) May 14, 2024
The analyst has, as CryptoGlobe reported, predicted the price of Bitcoin would reach $500,000 this year based on key technical indicators and their past influence on the cryptocurrency price.
In a video at the time, 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.
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.
Featured image via Pixabay.
