We all know the Dutch analyst PlanB from his famous Stock-to-Flow model that he published in 2019. For a long time, the model succeeded in correctly predicting the course of bitcoin, but things went wrong after the recent bull run. The fact that faith in the model has disappeared does not mean that we are immediately rid of PlanB, because he continues to share interesting analyses.
Price target of $25,000
In a new tweet, PlanB writes about the upswing that bitcoin is experiencing in the new year 2023. Having previously broken through the Realized Price of about $20,000, the analyst says eyes should now be on the 200-week moving average. It is currently at $25,000.
From the current price of about $23,000, we still have quite a bit of climbing to get there. It will be interesting to see if bitcoin has that potential at the moment and if it is possible to break that important line and transform it into a new fulcrum.
Throughout the history of bitcoin, this has continuously been an important support for the price, but that has not been the case in recent months. Bitcoin lost this important frontier and with it the confidence of the market fell. Optimism is now slowly returning and, according to PlanB, it is only a matter of time before we make an attempt to break this course.
A big chance
Looking at the comments below the post, we see that PlanB sees the opportunity to buy bitcoin below this important trendline as a huge opportunity. “It is crazy, indeed. In my view, this is a temporary opportunity,” said PlanB in response to one of his followers who expressed surprise that bitcoin has been trading below this limit for so long.
Crazy indeed. A limited time offer IMO.— PlanB (@100trillionUSD) January 23, 2023
In the end, it all remains to be seen, of course. The same PlanB predicted in 2021, like many other analysts, that it was only a matter of time before bitcoin would hit the magic price of $ 100,000. We all know by now how that ended, but also what the reasons were for missing that prediction.
Bitcoin suffered enormously from the interest rate hikes of the US Federal Reserve, which it implemented to fight skyrocketing inflation. Now they are slowly getting inflation under control and the time seems almost there for the cycle of interest rate hikes to come to an end. Is it time for a new bull market? Only the passage of time can give us the answer to that question.