Closely followed quantitative analyst PlanB says Bitcoin (BTC) has breached a key resistance level that has historically been the start of multi-year rallies.
The pseudonymous analyst tells are 1.8 million X followers that BTC’s five-month realized price has surpassed its biennial realized price, a pattern that marked the start of a bull market three times in the past.
“The realized price after five months (aka Short Term Holder price, light blue) is now above the realized price after two years (dark blue). If history is any guide (red circles), it will stay on top for the next 2+ years. Interesting times ahead.”
The realized price metric measures the value of all of its tokens at the price they were purchased for, divided by the number of tokens in circulation.
During bull markets, the price of the crypto king usually remains above all of its realized prices, according to PlanB.
He predicts that Bitcoin will not revisit prices below the USD 30,000 level if the bull rally is underway.
“Not buying Bitcoin < $30,000 now is like:
Do not buy Bitcoin < $10,000 in 2019/2020.
Do not buy Bitcoin < $500 in 2015/2016.
Do not buy Bitcoin < $10 in 2011/2012.
Life is about choices.”
So is Plan B to hold keep a close eye on Bitcoin’s Relative Strength Index (RSI), a widely used momentum indicator that aims to determine whether an asset is overbought or oversold.
He says the indicator is paving the way for a major rally similar to 2015.
“Like clockwork, exactly the same place as October 2015.”
The analyst previously predicted that Bitcoin will hit $50,000 before the next halving, which is expected in April 2024.
Bitcoin is trading at $29,620 at the time of writing, up 2.6% in the past 24 hours.
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Featured image: Shutterstock/Jorm S