Bitcoin's Golden Cross and PlanB's S2F Signal a Buy for ATH After Halving
On October 30, 2023, Bitcoin formed a golden cross, which is a bullish technical indicator that occurs when the 50-day moving average crosses above the 200-day moving average. Historically, golden crosses have been followed by significant price increases in Bitcoin.
In addition to the golden cross, PlanB's Stock-to-Flow (S2F) model is also signaling a buy for Bitcoin. The S2F model is a quantitative model that predicts Bitcoin's price based on its scarcity. The model is based on the fact that Bitcoin's supply is limited and its production rate is decreasing over time.
The S2F model has been highly accurate in predicting Bitcoin's price in the past. In fact, it predicted Bitcoin's 2021 all-time high with remarkable precision.
The combination of the golden cross and PlanB's S2F signal suggests that Bitcoin is poised for another major bull run in the lead-up to the next halving, which is scheduled to occur in April 2024.
What is a golden cross?
A golden cross is a bullish technical indicator that occurs when the 50-day moving average crosses above the 200-day moving average. The 50-day moving average represents the short-term trend, while the 200-day moving average represents the long-term trend.
When the 50-day moving average crosses above the 200-day moving average, it signals that the short-term trend is gaining strength and that the long-term trend is bullish.
What is PlanB's S2F model?
PlanB's Stock-to-Flow (S2F) model is a quantitative model that predicts Bitcoin's price based on its scarcity. The model is based on the fact that Bitcoin's supply is limited and its production rate is decreasing over time.
The S2F model compares Bitcoin's stock, which is the total amount of Bitcoin that has been mined, to its flow, which is the rate at which new Bitcoin is being mined. The model predicts that Bitcoin's price will increase as its stock-to-flow ratio increases.
What does this mean for Bitcoin investors?
The combination of the golden cross and PlanB's S2F signal suggests that Bitcoin is poised for another major bull run in the lead-up to the next halving.
Investors who are bullish on Bitcoin may want to consider buying Bitcoin now, while it is still relatively early in the bull cycle.
Unique insights
In addition to the above, here are some unique insights into the Bitcoin golden cross and PlanB's S2F signal:
The golden cross has occurred only three times in Bitcoin's history, and each time it has been followed by a significant price increase.
PlanB's S2F model has been highly accurate in predicting Bitcoin's price in the past.
The next halving is scheduled to occur in April 2024, and halvings have historically been followed by major bull runs.
Conclusion
The combination of the golden cross, PlanB's S2F signal, and the upcoming halving suggests that Bitcoin is poised for another major bull run. Investors who are bullish on Bitcoin may want to consider buying Bitcoin now, while it is still relatively early in the bull cycle.
It is important to note that Bitcoin is a volatile asset and any investment comes with risk. Investors should always do their own research before making any investment decisions.
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