The analyst who first applied the stock-to-flow model to Bitcoin says the top cryptocurrencys bull market is just getting started despite its recent struggle to stay above $60,000.
In a new tweet, PlanB tells his 347,400 followers he believes that BTCs current boom cycle is far from over.
“In my opinion, we are only about 4 months into the bull market and nowhere near the end of it. Bitcoin is just getting started.”
The quantitative analyst looks at Bitcoin‘s historical performance in terms of momentum to support his argument. According to PlanB, BTC’s relative strength index (RSI), which measures the pace of price movements for a given asset, has not yet reached its peak.
“Bitcoin monthly RSI is not even 95. In 2011, 2013 and 2017 bull markets we had at least 3 months above 95. Still early.”
Source: PlanB/Twitter
While PlanB is long-term bullish on the leading cryptocurrency, he says Bitcoin is still facing significant headwinds.
“There are also some real risks left (goverment ban, quantum computing) that have to be dealt with.”
The quant analyst adds that a Bitcoin supercycle, where the largest cryptocurrency would ascend to $1 million, is currently out of the question as he believes that most market participants are irrational.
“In my opinion, markets are not completely rational and thus will not front-run next halving cycle or the S2F (stock-to-flow) model. Greed and fear will take over from ratio at some point.”