Quant Analyst PlanB Says Bitcoin Price Action Mirrors Pattern Ahead of Epic Rally to $69,000
Popular quantitative analyst PlanB says that Bitcoin’s (BTC) current price action reflects a pattern that preceded the massive rally that catapulted BTC to its all-time high.
The pseudonymous trader argues to his 1.8 million Twitter followers that $20,000 “is the new” $4,000 for BTC.
After breaking $19,000 in late 2017, Bitcoin plunged to below $4,000 in late 2018. BTC hovered around the $4,000 level until April 2019, when it started to move upwards. The largest crypto asset by market capitalization then largely continued its rally until November 2021, when it hit its all-time high of $69,000.
$20K is the new $4K pic.twitter.com/HCnIla45KA
— PlanB (@100trillionUSD) 16 October 2022
Bitcoin is trading at $19,606 at the time of writing and is up 1.7% in the last 24 hours. BTC has been trading around the $20,000 level since mid-June.
PlanB also notes that the percentage of Bitcoin in losses currently reflects the levels it was at during major buying opportunities in 2011, 2015 and 2019.
Great buying opportunity (like 2011, 2015 and 2019) or this time is different, that’s the question. pic.twitter.com/Wh1Pp44xgR
— PlanB (@100trillionUSD) 13 October 2022
The analyst looks at the correlation between Bitcoin and the S&P 500 tracks that both BTC and the stock market index will eventually recover from the current bear market.
“It’s only recently that people started complaining about the correlation between Bitcoin and the S&P500, only since they both fell in value. But the correlation has always been there since the S&P500 rose from 1,000 [points] to 4000 [points] and BTC from $1 to $20,000. Both will rise again.”
Plan B too notes that most of the Bitcoin sales in the past 12 months came from traders cutting their losses after buying $60,000 worth of BTC, as well as some older buyers taking profits after accumulating less than $15,000 worth of BTC.
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Featured image: Shutterstock/Xavier Fargas
