Quant analyst PlanB is making some bold predictions about Bitcoin’s future price. He believes Bitcoin is headed for some serious gains, potentially reaching a minimum of $270,000 by 2025.
PlanB’s Prediction: Based on RSI
PlanB’s prediction is based on his analysis of Bitcoin’s monthly Relative Strength Index (RSI). The RSI is a tool used to gauge momentum and identify overbought or oversold conditions in the market.
Historically, during Bitcoin bull markets, the RSI has spent multiple months above 80. PlanB notes that during these periods, Bitcoin has seen significant gains. With the RSI approaching 80 again, he anticipates a repeat of this pattern.
The Math Behind the Prediction
PlanB’s calculations are as follows: He expects at least three months where the RSI stays above 80. Based on past performance, he estimates an average monthly gain of 40% during these periods.
Starting from the current price (around $100,000), three months of 40% gains would bring the price to $270,000. He considers this the “absolute minimum” price for Bitcoin by 2025.
Disclaimer
It’s important to remember that these are predictions, and the actual price of Bitcoin could be higher or lower. Investing in cryptocurrency is risky, so always do your own research before investing.