Bitcoin Bull Market Forming According to Popular Quant Analyst PlanB
Popular quant analyst PlanB says that one key indicator suggests a Bitcoin (BTC) bull market is now forming.
In a video update, the pseudonymous analyst tells his 209,000 YouTube subscribers that a combination of 200-week means suggests Bitcoin may soon enter an explosive uptrend based on historical precedent.
200-Week Means Signal Potential Bitcoin Breakout
The analyst points out that the 200-week arithmetic and geometric means are currently close together on the chart, signaling a possible Bitcoin breakout.
“It might be that the bull market is still forming and that the [arithmetic mean] will separate again, will diverge again, from the geometric mean. One more thing on those two lines. Notice that you can’t have a bear market or a big crash when the 200-week [arithmetic mean] and the geometric mean are together. The big crashes here [in 2021 and 2022] are happening when there’s a diversion between the two lines. Also, here in 2018, there was a big gap between the two [means]. Same here in 2014 and 2015.”
Historical Trends Support Potential Upside
The analyst highlights that historical data shows that when the two types of 200-week means were near each other on the chart in 2020 and 2017, Bitcoin soon experienced explosive runs to the upside.
“In fact, if we look at the historical situations where the lines are together, that would be here at the end of 2020; that’s when the bull market began. The end of the bull market, the FOMO (fear of missing out) phase. Same [thing] in the beginning of 2017, the lines were together. So [arithmetic mean] and geometric mean together could mean the bull market is about to start.”
Bitcoin is currently trading at $80,641, up nearly 2% on the day.
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