Bitcoin Below 40k Dollars: Bargain or Risk? Analyst Weighs In

Crypto News- As the cryptocurrency market braces for a potential bull run, savvy investors may see the sub-$40,000 range as a strategic opportunity to accumulate Bitcoin (BTC) assets.

Bitcoin Below 40k Dollars: Bargain or Risk? Analyst Weighs In

A prominent analyst in the crypto sphere, recognized for creating the influential stock-to-flow BTC price models, PlanB, recently hinted that the window for expanding Bitcoin holdings under the $40,000 threshold is narrowing. In a post on X, PlanB conveyed a sense of urgency, suggesting that the current price levels might be transient.

According to PlanB, Bitcoin is on the verge of surpassing its recent 18-month highs of $37,883, indicating that time is of the essence for investors to bolster their Bitcoin exposure while the price remains below $40,000. The analyst, renowned for his optimistic long-term outlook on Bitcoin’s price trajectory, supported his bullish case with realized price data.

The realized price is computed by dividing Bitcoin’s realized cap (the total price at which all BTC last moved) by the current supply, presently just below $21,000. PlanB emphasized that historical bear market bottoms for Bitcoin often occur when the spot price dips below the realized price.

Conversely, the onset of bull markets tends to coincide with the spot price surpassing the realized price levels, particularly for coins that have moved within the last two years or the last five months, indicating a ‘younger’ status.