Plan B Analyzes Bitcoin’s Future Price Performance
Bitcoin saw a significant decline at the start of May after breaking key support at $60,000, dropping to $56,000, sparking concerns among investors about further potential losses. This comes at a time when the cryptocurrency market is teetering on the edge, with uncertainties surrounding the anticipated post-halving rally.
Bitcoin’s Stock-to-Flow Model Insights
– Bitcoin closed slightly above $60,000 in the previous month, reflecting a $10,000 drop from March while maintaining a 36% year-to-date increase.
– The historical accuracy of the stock-to-flow model in predicting Bitcoin’s price has been emphasized by Plan B.
– May 2024 signifies the final month before the next halving event.
– Each previous halving coincided with an aligned stock-to-flow model price, showcasing the model’s predictive power.
Price Targets for Bitcoin
– The average Bitcoin price currently hovers around $34,000, close to the $55,000 figure forecasted by the original 2019 model.
– Plan B updated the model parameters, projecting an average price target of approximately $500,000 between 2024 and 2028.
– He expects Bitcoin to hit $100,000 in the latter half of 2024 as mining revenue recovers post-halving.
– The market peak is anticipated in 2025, with Bitcoin potentially exceeding $200,000.
Technical Indicators Analysis
– Plan B examined technical indicators such as the Relative Strength Index (RSI) and the 200-week moving average.
– RSI has normalized around 66 after reaching a peak of 77, indicating price stabilization.
– The 200-week moving average has slightly increased to $34,000, acting as a conservative support level during bull markets.
– Bitcoin’s recent losses followed the halving event, with a focus now shifting to the Federal Reserve’s monetary policy amid persistent inflation concerns.
Bitcoin’s Current Price Assessment
Bitcoin is currently trading at $57,779, with weekly losses of nearly 10%.
– It is crucial for Bitcoin to stay above $55,000 to negate bearish sentiment in the market.
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