Stock To Flow Model Creator Says BTC Is Weak Despite Recent Gains

– Advertisement –

Despite setting off on a slowly-gaining path, BTC is showing weak signs, says Plan B.

PlanB, an analyst who rose to prominence by creating the BTC Stock-to-Flow model, in a tweet today, has asserted that Bitcoin is “weak” despite recent gains.

PlanB highlighted the bearish metric today, citing bitcoin’s Relative Strength Index (RSI). PlanB’s chart reveals a BTC RSI slightly above 40 on the monthly timeframe. The analyst has urged investors to exercise patience, highlighting that it is all part of the price cycle.

#bitcoin still weak (RSI). Patience. Cycles. pic.twitter.com/naNNCpy2XA

— PlanB (@100trillionUSD) January 4, 2023

This disclosure comes despite three consecutive winning sessions since January 1. BTC closed the first day of the new year with a 0.45% gain and ended January 2 with an increase of 0.34%. The asset nearly ended January 3 flat. Nevertheless, it registered a meager 0.01% gain. 

Meanwhile, other analysts, such as Duo Nine, are optimistic about the asset’s performance, as it targets the $17,000 price level. He noted that a break above $17,000 could trigger a FOMO trend that would attract massive demand to the market. 

Big day approaching for #Bitcoin

A break above $17k may unleash the FOMO and @CryptoCapo_ may start to sweat.

Altcoins are also turning quite green lately, what is this? 😅

The market was meant to fall by 50% according to Capo.

We should find out soon enough. #BTC #BTCUSD pic.twitter.com/cIaaCCVRSk

— Duo Nine | discord.gg/ycc (@DU09BTC) January 4, 2023

Duo Nine cited another notable analyst, il Capo of Crypto, who remains bearish on the markets to this point. il Capo believes BTC is poised to revisit the $12,000 zone. The last time BTC saw this level was in October 2020. For months, the analyst has remained convinced of a $12K price dip that will precede a trend reversal. He reiterated this stance today.

16600, 16800, 16600, 16800, 16600, 16800…

And when you least expect it…

12k

— il Capo Of Crypto (@CryptoCapo_) January 4, 2023

The community has been torn between bearish and bullish forecasts, as BTC gives mixed signals following the terrible end to the previous year. A previous report highlighted the contrasting forecasts made by analysts on whether the asset is currently undervalued. While market watchers such as JA Maartun believe BTC is undervalued, others, including MAC_D, believe this is not the case yet.

BTC’s Price Analysis 

The asset is riding on a multi-day relief rally that could see it recapture the $17,000 price point for the first time since December 16, 2022. BTC’s bullish start today saw the asset surge to an intraday high of $16,919 before facing a price rejection.

Despite the retracement, the asset sits above its first resistance point at $16,791. BTC is currently gunning for the second crucial resistance at $16,893, after which the asset could target a price above $17,000, as its third resistance sits at $17,078 in the event of an extended rally. 

If the asset does not hold above the first resistance at $16,791, a dip below the level could bring the first support zone of $16,606 into the picture. This will occur if BTC does not hold above the pivot point at $16,708. Sustained selloffs could batter the asset to the second crucial support at $16,523. The asset is trading at $16,833 as of press time, up 0.63% in the past 24 hours.

– Advertisement –