– Bitcoin (BTC) is now trading below the realized price and the 200-week moving average, an indicator that tells if the top coin is in a bull or bear market.
– This is only the eighth time that the cryptocurrency breached the historical level since its inception.
– Plan B says that Bitcoin is also way below the projected trajectory based on the stock-to-flow (S2F) model as it hovers at $20,000.
– The analyst says that the trendline suggests that the weak-hand investors who lack the resources or conviction to hold their investments have already capitulated and sold off their holdings.
– While the current downturn has some semblance with the bear market in 2015 when Bitcoin tanked but eventually recovered, Plan B says that the situation now is different in that seven years ago, BTCs realized price managed to stay above the 200-WMA.
– He is optimistic though that the bearish outlook for Bitcoin will eventually change.