Analyst Plan B says that Bitcoin (BTC) has bottomed out and now signals the start of a new cycle. Here are the latest BTC comments of the analyst, who stands out with his stock-to-flow prediction…
PlanB pointed to specific metrics for Bitcoin
PlanB told his 1.8 million Twitter followers about on-chain data. He says the data shows that more than half of circulating BTC is currently in profit. PlanB’s chart points to the majority in profit, indicated by the red dots. Dark blue dots highlight a cycle showing roughly half of the profit. According to the analyst, a strong bottom signal is when coins in profit rise from 50 percent to over 60 percent. PlanB explains this as follows:
More bottom signals: >60% of all Bitcoin in profit
Plan B also looks at BTC’s long-term relative strength index. This metric aims to determine whether an asset is oversold or overbought. It is one of the most widely used momentum indicators. Using the indicator on a 14-month scale, Plan B points out that BTC’s RSI is at historic lows. It also shows that Bitcoin is deeply undervalued. The analyst points out that the RSI will not stay low forever.
Glassnode data also highlights bearish market ground formation
Crypto analytics firm Glassnode said that the on-chain metrics set a bear market backdrop in Bitcoin. In a recent report, the firm noted that active investors over the past month showed the intensity of the overall change. Pointing to this, he said that the accumulation trend score of BTC reflects the 2018/2019 bottom period. The firm uses the following expressions:
During the capitulation in early 2022, the accumulation trend score shows significant accumulation by major investors, with $24,500 confiscated for exit liquidity from the last bear market rally. Currently, this metric indicates an equilibrium (neutral) structure in the market that remains similar to early 2019.
What is the latest situation in BTC price?
Meanwhile, Bitcoin (BTC) continues to change hands above $20,000, as we have reported as Cryptokoin.com. BTC, the largest crypto by market cap, has dropped 0.4% in the last 24 hours. It changes hands at $20.647. Although he tried to exceed $21,000 over the past day, he failed to do so. The coin’s seven-day rise is 7.5%. Currently, its market cap has briefly fallen below the $400 billion mark it had emerged from. It currently has a market capitalization of $396 billion. The overall cryptocurrency market is valued at $1.06 trillion.
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