PlanB: "The bitcoin bottom has already passed; I expect higher prices from now on"

• The price of bitcoin closed August above the 200-week average.
• Willy Woo also sees a clear signal that the price of bitcoin has bottomed out.

The market analyst known as PlanB, creator of the Stock-to-Flow (S2F) model, stated that bitcoin has surpassed its lowest point in this cycle. In my opinion, the bitcoin bottom is already behind us. I expect higher prices from here on out, the specialist asserted.

This claim is based on the behavior of several indicators detailed by the analyst. The first focuses on the closing of August with bitcoin trading at $78,571. This figure places BTC above the 200-week moving average (MA), which is at $65,000. This indicator calculates the average price of the asset over the last 200 weeks to identify the long-term technical trend.

According to historical behavior, staying above the 200-week average after recovering it usually marks the end of prolonged bear markets. Additionally, the asset surpassed the realized price of five months for short-term holders, set at $72,000. This metric measures the average cost at which the coins last moved on the network.

Being above the realized price of short-term holders indicates that most recent buyers are recording unrealized gains. In parallel, the realized prices of different groups on the network show a progressive increase. This rise in the average base cost evidences the entry of a positive net capital flow and accumulation processes.

The percentage of bitcoin in profit rose from 50% to 72% during the analyzed period. Meanwhile, the monthly Relative Strength Index (RSI) increased from 41 to 51 points. The RSI is a momentum indicator that measures the speed and change of price movements on a scale of 0 to 100, where exceeding 50 points represents a transition into technical strength territory.

In previous cycles, the monthly RSI exiting weakness zones to levels above 50 coincided with the start of sustained bullish trends. The combined reading of these historical data and on-chain metrics, according to PlanB, suggests a reduced risk of registering new significant lows in the price.

Adding to PlanB's reading is the analysis by Willy Woo. As reported by CriptoNoticias, the specialist observed that the level of risk in the market is close to zero after six months of bearish trend. After a long absence, liquidity has returned to the network, which has caused a decrease in risk. It certainly seems to me a clear signal that we have hit bottom, Woo stated.

The analyst detailed that money flows into the network recorded a positive variation. Capital flows into the network are now in positive territory. The most important highlight has been the improvement in the structure of stronger lows; this means that flows have shifted from deteriorating to strengthening, Woo explained regarding the current market structure.

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