Popular Twitter user by the name PlanB, known for his cryptocurrency market analysis has again carefully observed bitcoin’s price and noted that there is a possibility that Bitcoin will hit $8,000 by May of 2020. This will be coinciding with the quadrennial halving of the top valued digital currency, Bitcoin.
Bitcoin Rising To $8,000 By May 2020
The crypto market has been experiencing what is known as the longest crypto winter in its history. The recent move of the Bitcoin within the range of $3,800 and $3,900 and historical antecedents have made many cryptoanalysts and enthusiasts to believe that the winter market has come to an end, finally.
PlanB noted in his recent analysis via Twitter that the one-month Relative Strength Index (RSI) measure has begun to trend higher. And based on history, in months when Bitcoin’s schedule moves, RSI reaches 70 which indicates overbought of the asset according to him.
Based on the RSI analysis, he deduced potential price action from the historical record. PlanB stated that this indicates that by May 2020, Bitcoin could have reached the worth between $8,000 and $10,000, doubling its present price. He described this in his words that,
“I derive RSI (basically a moving average) from projected price, and goal sought BTC to get RSI 70 in May 2020 (I think it was +6% every month next 14 months from current price of $3900).”
Notably, the prediction of planB on Bitcoin hitting $8k in 14 months is not new. A prominent analyst known as Filb Filb noted earlier that for the continued stability of the mining ecosystem, specifically in regards to the dichotomy between transaction fees and block rewards, Bitcoin should reach $7,000 real soon.
Bitcoin Will Hold Above The $2,000 Mark
Previously, PlanB noted in an analysis that Bitcoin is not likely to fall below the $2,000. Some analysts still think that the bear market is not yet over and there could still be a deep fall below his prediction.
PlanB’s assertion which is based on historical antecedents of the cryptocurrencies noted that the fact that Bitcoin miners have already capitulated, indicated by the fleeting 25% collapse in network difficulty during November’s strong downturn should signal some semblance of a bottom.
Also, history shows that the last two times a large group of miners surrendered to the state of the bearish market, BTC began moving higher in the months that followed as hash rates eventually returned in full force. He further noted that the history of block reward reduction known as halving shows that BTC falling lower isn’t possible. This is because Bitcoin has never fallen below its geometric mean, situated at $2,750 at present and may never as long as current price levels are upheld.