Popular quant analyst PlanB says the recent Bitcoin (BTC) rally isn’t the bull trap many investors are weary of.
PlanB tells his 1.8 million Twitter followers that several benchmark indicators are suggesting that what many believe is a bull trap is in fact the start of a new bull cycle.
“To be clear, in my opinion current Bitcoin pump is not a bull trap but the (early) start of the next bull run.”
Plan B says that an upward move of the Relative Strength Index (RSI) indicates bullishness for Bitcoin, even though the RSI remains at the historic lows seen in both 2015 and 2019.
“Bitcoin is getting stronger (RSI).”
He says that Bitcoin has already found its bottom for the current bear market cycle, doubling down on his previous position that Bitcoin’s bottom was $15,500 in November 2022. He predicts the next halving event in 2024 will drive Bitcoin’s price to $32,000.
Plan B also says the historic price correlation between the S&P 500 index and Bitcoin shows the king crypto asset has more room to climb.
“BTC playing catch-up with S&P (S&P implied BTC price $54,000).”
“BTC has been correlated with S&P (and other assets) from the start. The difference is that if S&P jumps, BTC jumps much much harder. In the chart below S&P jumps from roughly 1,000 to 4,000, while BTC jumps from roughly 1 to 20,000.”
At time of writing, Bitcoin is changing hands at $21,115.