BITCOIN

How does Bitcoin perform after PlanB's bullish signal "red dot" appears? A comparison of the trends in 2017 and 2021.

share
How does Bitcoin perform after PlanB

Bitcoin recently hit a historic high of $66,999 before dropping below $60,000. Coupled with the frenzy around Shiba Inu coin, it inevitably brings back memories of the Dogecoin bubble earlier this year. However, Bitcoin's trajectory this year seems somewhat similar to 2017, and analyst PlanB claims that the red dot representing a bull market signal has appeared in the model. So, what happened after the previous red dot appeared?

2017 vs. 2021

Both 2017 and 2021 witnessed the halving of block rewards followed by regulatory crackdowns from China in the subsequent year's second half, coinciding with Bitcoin setting historic highs.

Twitter users have been comparing recent trends to 2017, noting some similarities.

Smart Crypto seems to have referenced other users' technical analyses. Twitter user TechDev shared a similar analysis earlier on 10/27, pointing out the head and shoulders pattern emerging in mid-October for both years, with Bitcoin rallying thereafter in 2017.

It is worth noting that while both hit all-time highs in October, volatility remains high. In 2017, there was another drop on 11/12 before the continuous rise. This aligns somewhat with the views of Bitcoin analyst PlanB, who expects Bitcoin to remain around the sixty-thousand level in October, with the following price predictions for the months after his 6/20 forecast:

  • August >47K
  • September >43K
  • October >63K
  • November >98K
  • December >135K

PlanB also recently introduced the bullish signal "red dot," which last appeared on 6/1 last year.

Bull Market Signal "Red Dot"

On 10/24, PlanB noted that Bitcoin has entered "ATH mode," indicating the emergence of the red dot in the model, which typically marks the start of the next upward cycle and may sustain the uptrend for several months.

Previously, when PlanB's prediction model showed the red dot signal on 6/1 last year, Bitcoin, after consolidating in June and July, began its uptrend by the end of July and has since not dropped below ten thousand dollars.

Bitcoin Line Chart from 2020/6 to 2020/12

While historical trends can provide insights, past performance does not guarantee future results. Although Bitcoin appears to follow PlanB's price model, the model's upper and lower limits are quite broad, requiring cautious consideration by investors.