Amid the ongoing correction of Bitcoin and the entire cryptocurrency market, a leading analyst at PlanB believes that the BTC bull market is not over at all.
In a new tweet, a cryptanalyst known for applying the Stock-to-Flow (S2F) model to Bitcoin believes that the sell-off that drove BTC from $ 60,000 to $ 52,000 on April 17 removed traders with excessive leverage from the market.
“In my opinion, this is a common liquidation, where stupid leveraged longs handed their coins into the hands of smarter and stronger ones. The bull market is unaffected and in full swing. ”
The cryptanalyst also highlighted the solid foundation of Bitcoin and the reduction in BTC supply:
“Bitcoin has dipped a little, but the shortage of coins is real … and continues to grow.”
Another Bitcoin Jack trader uses the charts of the cryptanalyst platform Glassnode to confirm that BTC has moved from small hands to large ones after the surrender.
“On April 15, 16 and 17, 482 thousand exchange addresses were invested in BTC.
During the same period, ~ 220 thousand addresses withdrew funds from exchanges, registering a net positive outflow.
Many tiny hands -> fewer large hands
Confirmed by the short-term surrender of the holders. ”
The Glassnode Spent Inferred Profit Ratio (SOPR) is an indicator that shows whether market participants are selling at a profit or at a loss. According to the Bitcoin Jack chart, the SOPR is currently below one, indicating that sellers are ditching their BTC at a loss.
In a separate tweet, PlanB notes that Bitcoin’s momentum indicator, the Relative Strength Index (RSI), has yet to peak.
“Bitcoin looks strong at RSI 92. Still no higher than RSI 95 like in bull markets in 2017, 2013 and 2011. I calculated that the BTC price required for the RSI 95 at the close of April is $ 92,000. “
If Bitcoin’s RSI continues to hover above 90, PlanB expects the leading crypto asset to rise more than 450% in the coming months.
“The RSI is now 92 and April is the 2nd month with> 90. If this run continues for another 4 months at RSI 92, BTC will be $ 300,000 in July. In my opinion, after the next all-time high (possibly by the end of this year), volatility will return, and we cannot rule out a 50-80% drawdown. ” …