The creator of what is arguably Bitcoin’s most famous price forecasting tool (BTC) stated that the largest cryptomone is in a bull market.
In an Aug. 18 tweet, Quantum Analyst PlanB, creator of the Stock-to-Flow series of Bitcoin price models, said that with a Relative Strength Index (RSI) of 64, the bull market was „confirmed.
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PlanB: BTC „looks strong“
The RSI is used to determine whether Bitcoin is bought or sold in excess of a specific price.
The current behavior mimics that of previous halving cycles, with 2012 and 2016 both seeing solid RSI scores accompanying a price that runs shortly after the halving event itself.
„Bitcoin looks strong, RSI 64, bull market confirmed,“ PlanB wrote.
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BTC/USD surprised commentators by holding back $12,000 in support after another attempt to secure the level suddenly succeeded on Monday.
At the time of this article, the situation was beginning to show signs of stress, with a drop that bounced back to just $12,020.
Earlier, Cointelegraph reported consensus building around $13,000 and $14,000 as the next significant levels, whose breakout could trigger a serious push toward new historic highs.
The dollar could suffer a „hemorrhage“
BTC broke away from gold as a safe haven in the last two weeks, but one theory clearly explains why both assets have performed so well.
The US dollar has weakened, and depending on the US dollar’s currency index, a more significant collapse may be near.
The price of Bitcoin rises as the U.S. stock market recovers, maintaining the correlation
The index measures the strength of the dollar against the currencies of a number of U.S. trading partners. As analyst Mati Greenspan noted, the value is now at its lowest point in two years.
Cointelegraph Markets analyst Michaël van de Poppe further described the index as „the real reason for Bitcoin’s and gold’s strength.
Continuing, gold supporter Peter Schiff gave a gloomy outlook for the USD.
„The slow bleeding of the US dollar continues, with the Dollar Index breaking below $92.50 for the first time since May 2018,“ he tweeted.
„Once the January low is broken (4 points lower), a larger wound will open up and blood loss will accelerate. Once the 2008 low is broken, the dollar will bleed out.
The Federal Reserve is widely inclined to demand higher inflation in the future, something that commentators have previously said would be extremely intimidating