World-renowned cryptocurrency analyst PlanB predicts that Bitcoin (BTC) could soar to between $40,000 and $50,000 in the coming months.
PlanB, the developer of the Bitcoin Stock Flow Model (S2F), announced the current BTC forecast in a video he shared on YouTube. According to the analyst, Bitcoin’s price may rise as it approaches the next halving.
Bitcoin halving is an event where the supply of Bitcoin is mathematically reduced and the block reward is halved. According to Bitcoin’s underlying protocol, a halving event occurs every 210,000 blocks. Halvings can also have effects on the Bitcoin price. A lower block reward means that the supply of Bitcoin decreases and if demand remains the same, the balance of supply and demand could have a positive impact on the Bitcoin price. In previous halvings, significant increases were observed in Bitcoin price.
PlanB said the following about this important event:
“The big question is what will be the price of Bitcoin at the April 2024 halving? We can only try to predict this from the 200-week moving average…
The 200-week moving average is currently [ayda] $500 is rising, so nine times $500 will be $4,500, and Bitcoin’s 200-week moving average is currently just under $28,000, so $28,000 plus $4,000 is $32,000, so at halving the 200-week moving average will be around $32,000.
And Bitcoin will be above that level, and usually 50% above that, which indicates that during the halving, Bitcoin will be in the range of $40,000 to $50,000.”
Last month, the analyst shared an indicator revealing that the leading crypto asset is poised for a bull run. At that time, PlanB pointed out that the current price of BTC was above the cost price of two years, which indicated that historically large upward movements were expected.
The actual cost price of Bitcoin is a metric that takes the average value of the BTC supply calculated over the price at which the cryptocurrencies were last moved.
Bitcoin is trading at $30,450 at press time. An increase towards PlanB’s predicted range would mean an increase of 31% to 64% for Bitcoin.
You can follow the current price action here.