PlanB’s new trading strategy revolves around Bitcoin halving, attracting attention due to its significant profits.
Bitcoin halving is an event that occurs approximately every four years. Throughout history, it has resulted in significant price increases due to the 50% reduction in the rate at which new BTC can be mined.
These events create increased scarcity, which according to PlanB, presents optimal opportunities for savvy investors.
PlanB’s model, known as the “Stock-to-Flow Trading Rule,” involves buying BTC six months before Bitcoin halving and selling 18 months after the event. This trading strategy aims to capitalize on Bitcoin’s cyclical behavior, capturing the significant price increases typically observed around halving while avoiding the subsequent price downturns.
PlanB said:
With Bitcoin currently at $30,000, the strategy predicts a four-fold increase in Bitcoin’s price. We are now waiting for the next buy signal, and we already know that the halving will take place around April 2024, so six months before that would be around October… After that, Bitcoin will enter a bull market and stay there for another two years until October 2025.
Executing this strategy requires a deep understanding of the “Bitcoin market cycles.” According to PlanB, the model identifies the current phase as an “early bull market.”
As Bitcoin enters the final phase before the next halving, traders are eagerly monitoring signals indicating the end of the bull market phase. In previous cycles, the transition to the green phase has typically started right after Bitcoin halving, sparking an accelerated upward market trend.