Bitcoin (BTC) has yet to break out of the downtrend. With the crypto market still under pressure, Bitcoin price continues to slide below the critical $30,000 level. However, PlanB, the creator of the stock-to-flow (S2F) model, claims that the bear market is almost over. The analyst remains optimistic because periods with Realized Price Moving Average (RPMA) <1 and Relative Strength Index <50 have historically been great times to buy. On the other hand, PlanB also thinks that it may take some time for the RPMA and RSI to rise again. Details are here.
PlanB recently announced that the BTC price has set a new low for the next bull market. The BTC trend moved according to PlanB forecasts this week, with the price dropping close to the $28,500 level.
Now, PlanB reports that the bear market is almost over and the price should start rising again. The analyst believes current levels of RPMA and RSI suggest a bottom for BTC. believes. However, it may take 6-9 months (like 2014 and 2018/19) or 1-2 months (like 2011 and 2020) before we see a jump. Currently, Bitcoin is trading sideways near the $30,000 level.
“The Realized Price/Moving Average (RPMA, purple) best reveals the Bitcoin cycle. The Relative Strength Index (RSI, yellow) is similar but can be misleading at critical times (eg 2nd half of 2021). The good news: the bear market is almost over. I expect RPMA and RSI to start rising again.”
Also, PlanB shared that there is a correlation between the US stock market and Bitcoin, specifically the S&P 500 and BTC. Both the stock market and Bitcoin have been down since November 2021.
Besides, the S&P 500 is in a bear market as it is down about 20%. Analysts believe that Bitcoin accumulation at the current price could bring more returns to long-term investors.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.