Home » Quant Analyst PlanB Says Major Bottom Signal Flashing for Bitcoin As BTC Aims for $21,000 Level

Quant Analyst PlanB Says Major Bottom Signal Flashing for Bitcoin As BTC Aims for $21,000 Level

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The Quantitative Analyst’s Plan B is Bitcoin (Bitcoin) is a flashing signal that strongly suggests that major digital assets by market cap have bottomed out and are starting a new market cycle.

A pseudonymous analyst has told his 1.8 million Twitter followers that on-chain data shows that more than half of the BTC in circulation is currently profitable.

Plan B’s chart shows that BTC cycles from a majority of profits indicated by the red dots to about half of the profits indicated by the dark blue dots.

According to analysts, a coin profit above 50% to 60% is a strong signal of a bottoming out.

“More bottom signals: Over 60% of all Bitcoins are profitable”

sauce: Plan B/Twitter

Plan B also looks to Bitcoin’s Long-Term Relative Strength Index, one of the most widely used momentum indicators to determine if an asset is oversold or overbought. . Using a 14-month scale indicator, Plan B points to his BTC’s RSI at historically low levels, suggesting Bitcoin is severely undervalued. .

“Bitcoin RSI won’t stay low forever!”

Source: Plan B/Twitter

Leading crypto analytics firm Glassnode reports that on-chain indicators suggest Bitcoin is forming a bear market. In a recent report, the company said Said BTC’s cumulative trend score, which shows the strength of change in total balances of active investors over the past month, reflects the bottoming out process of 2018/2019.

The analytics firm said:

“Throughout the capitulation in early 2022, the accumulation trend score shows significant accumulation by large entities and the recent bear market rally to $24,500 due to exit liquidity. The indicator now suggests an equilibrium (neutral) structure of the market and remains similar to early 2019.”

Source: Glassnode

At the time of writing, Bitcoin (BTC) is trading at $20,767, flat for the day.

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Featured Image: Shutterstock/Melkor3D

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