Benzinga – A pseudonymous cryptocurrency analyst PlanB said that Bitcoin (CRYPTO: BTC) is on the cusp of a breakout, potentially reaching $500,000 by 2025.
What Happened: PlanB in a YouTube video said that it would be disappointing if Bitcoin’s price were to peak at $200,000 within the ongoing market cycle.
The analyst’s viewpoints are grounded in the stock-to-flow model, a tool often used for predicting the future value of commodities. This model assesses the current supply of a commodity against the amount being produced annually.
PlanB shed light on the implications of the model for Bitcoin’s trajectory: “So the next top will not be in this year, 2024, but in next year, 2025. That top – some people talk about $200,000 as the next top. You can see on this chart [below] that that would be very underwhelming.”
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The analyst is anticipating a surge of over 660% increase from present-day prices before the end of the bull market. “In fact, from a stock-to-flow perspective, we need a top that’s much higher than the average $500,000. So let’s say $600,000 [or] $700,000 maybe or a $1,000,000… So the top will be higher than $500,000 in 2025.”
Another pseudonymous analyst Rekt Capital also suggested that BTC is on the cusp of reaching a record-breaking high.
#BTC
Bitcoin has kickstarted the breakout process
Weekly Close above the Range High is the 1st step
And if $BTC needs to dip into the RH to successfully retest it as new support before continuing higher…
That would be the 2nd step to fully confirming the breakout#Crypto… https://t.co/CqwayCRunO pic.twitter.com/Ngqauexuux
— Rekt Capital (@rektcapital) April 1, 2024
Rekt Capital points out that Bitcoin has successfully passed the initial stage of this breakout by closing the last week of March above a critical resistance level at $69,000.
According to the analyst’s observations, the final phase for Bitcoin to cement its breakout status involves converting the $69,000 resistance point into a new foundational support level.
The process is described by Rekt Capital: “Weekly close above the range high (RH) is the 1st step. And if BTC needs to dip into the RH to successfully retest it as new support before continuing higher… That would be the 2nd step to fully confirming the breakout.”
Why It Matters: This comes as Bitcoin grapples with minor losses trading below $67,000 levels.
Market participants are weighing up the impact of renewed U.S. Treasury yields, which saw the 10-year note hitting a two-week high of 4.40% owing to lingering inflation concerns and robust manufacturing data. Heightened yields normally prompt a reallocation of investment away from riskier assets, including cryptocurrencies and tech stocks, towards so-called ‘risk-free’ options
Price Action: At around 4 am ET, BTC was trading up 0.12% at $66,559.819, according to Benzinga Pro.
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