Analyst PlanB Is Stocking Up on Bitcoin Amid Once-Every-Decade Signal

PlanB, a well-known quantitative analyst, recently announced that he will be making new Bitcoin (BTC) purchases and he pointed out data indicators that might signal a jump in the price of the leading cryptocurrency.

Following the last major price drop, PlanB tells his 1.8 million Twitter followers that he is buying the most popular cryptocurrency.

“My first Bitcoin investment was in 2015 at ~$400 (yellow circle). Most people said Bitcoin was dead. My second investment was in 2018 at ~$4000 when I published the S2F (stock-to-flow) model. Most people said Bitcoin was dead. My third investment is now at ~$20,000. Most people say Bitcoin is dead.”

According to PlanB, creator of the stock-to-flow pricing model for BTC, the cryptocurrency is presently trading below its 200-week moving average and its realised price for the first time in over 10 years.

Because the on-chain measure determines the average worth of all BTC by dividing the price at which they were purchased by the total number of BTC in circulation, analysts see realised price as a vital support area for Bitcoin.

PlanB claims that Bitcoin’s drop below the two main indicators represents a once-in-a-decade buying opportunity for Bitcoin bulls.

“Bitcoin below 200-week moving average ($23,000) and realized price ($21,000). Structural break of a 10-year+ trend, or temporary macro-driven buying opportunity?”

Alternately, various evidence are cited to support the argument for a possible Bitcoin surge in Plan B. The quant analyst believes that Bitcoin’s price should be higher because of the currency’s correlation with the S&P 500.

At the time of writing, one Bitcoin is worth $19,536, which is a 0.04% gain from the day before.