Have you ever heard people say, “This time is different”? If you’re hearing this, it’s probably about the financial markets. But according to some, this idea is completely wrong. The Bitcoin analyst PlanB does not want to hear this statement either. That would mean that the Bitcoin course doesn’t go down hard at all and that’s true will continue to increase.
Bitcoin price can only go up?
In a video, the Dutch former institutional investor describes in detail how the Relative Strength Index (RSI) for Bitcoin (BTC) has looked in recent years. This is not an obscure indicator, but one that countless analysts explain. Nevertheless, his approach is very striking.
The RSI measures how the price is behaving compared to a specific point in time before. Since the indicator displays all points on a chart, you can easily spot trends. A reading below 50 is a downtrend and a reading above 50 suggests the price is in an uptrend.
PlanB emphasizes that the indicator for Bitcoin is unlikely to fall below 50 in the long term. This is because the price has actually only increased in the last decade.
Bitcoin peak only at the end of 2024?
He also included the time bitcoin has and has had until the next bitcoin halving. Notably, just before the halving, each bottom of the RSI is green and blue, and each top of the RSI is red. At the moment the indicator is light blue, which indicates that we are far from the top.
In fact, the analyst thinks the next bull market will start soon. According to his conservative estimate, the uptrend will then end just below the stock-to-flow level, which will be $500,000 after the halving. He estimates the price would then be around $300,000, which we could reach by the end of 2024 and throughout 2025.