Legendary analyst and Bitcoin (BTC) bull PlanB shares his views on ongoing market bloodbath
Experienced Analyst PlanB[@100 ट्रिलियनयूएसडी]Which is known for its uber-bullish stock-to-flow model of BTC price, explains why the orange coin is being sold so much right now.
Bitcoin (BTC) monthly RSI at all-time low
Yesterday, Nov. 10, 2022, Plan B took to Twitter to share the dynamics of the Relative Strength Index (RSI) for the one-month timeframe. According to him, 1M RSI for the BTC/USD pair dropped to 40.5 in November.
In the 1970s J. Wells Wilder Jr., this indicator is used to display a trend in the recent price changes of a particular asset. This, in turn, allows analysts to check whether assets are overbought or oversold.
On the stock markets, the asset is considered to be oversold when RSI drops below 30. However, for such a large time frame, the 40.5/100 level is also very painful for bulls.
Bitcoin’s 1M RSI has never been so low in the entire history of the first cryptocurrency.
As covered by U.Today previously, seasoned analyst Charles Edwards claimed that, according to his “Energy Value Model,” Bitcoin (BTC) is also oversold and changes hands with more than a 50% discount.
Double Bottom Confirmed?
Furthermore, PlanB observed a recent drop in the price of Bitcoin (BTC) to $16,000, the “second capitulation” that marked the bottom of this bear cycle. The first was associated with the fall of Luna/UST in early May.
For him, this pattern looks exactly like that of the 2015 cycle with a double bottom associated with the hack of the Bitstamp exchange and the activation of Bitcoin’s XT hardfork. Meanwhile, PlanB is not certain that Bitcoin’s (BTC) bull run has started.
As previously covered by U.Today, Bitcoin’s stock-to-flow model was broken in this cycle: according to the model, BTC was predicted to rise to six-figure waters in 2022.
