Quant analyst PlanB says Bitcoin price action mirrors pattern leading up to epic rally to $69,000

Popular quantitative analyst PlanB claims that the current price action of Bitcoin (BTC) reflects a pattern that preceded the massive rally that catapulted BTC to an all-time high.

The pseudonymous trader argues to his 1.8 million Twitter followers that $20,000 “is the new” $4,000 for BTC.

After crossing the $19,000 mark at the end of 2017, Bitcoin fell below $4,000 at the end of 2018. BTC hovered around this $4,000 level until April 2019, when it started to increase. The top crypto asset by market capitalization then largely continued its ascent until November 2021, when it printed its all-time high of $69,000.

Bitcoin is trading at $19,606 at the time of writing and is up 1.7% in the last 24 hours. BTC has been trading around the $20,000 level since mid-June.

PlanB also notes that Bitcoin’s percentage loss currently reflects the levels it was at during major buying opportunities in 2011, 2015, and 2019.

Looking at the correlation between Bitcoin and the S&P 500, the analyst predicted that BTC and the stock index will eventually recover from the current bear market.

“It was only recently that people started complaining about the correlation between Bitcoin and S&P500, only since they both declined in value. But the correlation has always been there since the S&P500 rose from 1 000 [points] at 4,000 [points] and BTC from $1 to $20,000. Both will be resurrected.

Source: US$100 trillion/Twitter

Plan B too Remarks that most Bitcoin sales over the past 12 months have come from traders who cut their losses after buying BTC at $60,000, as well as some older buyers who take profits after accumulating BTC for less than $15 $000.

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Feature image: Shutterstock/Xavier Fargas

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