Bitcoin price still can’t go back above $ 60,000 and prices are slowly moving down. And although the creator of the popular stock-to-flow model agrees that regular corrections in the leading cryptocurrency cannot be avoided, the beginning of the current cycle is “nowhere near”.
Here you can see in more detail why the developer of the model is so convinced of a further price increase, as well as a technical look at where the cryptocurrency could be in the current cycle compared to previous cycles.
The stock-to-flow creator says the top in the current cycle is “nowhere near”.
Bitcoin is well on its way to proving the frequently cited stock-to-flow model for predicting future price increases. The now revised mathematical model takes into account the asset’s limited supply, regularly scheduled halving, and other factors to formulate a potential course that the price per BTC should loosely follow.
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Due to the notorious volatility of the cryptocurrency, the price can fluctuate significantly, but it largely follows the course of the stock-to-flow model. Plan B, the creator of the model, took the opportunity to remind supporters of the prediction tool that cryptocurrency can rise or fall by 20% or more in short periods of time.
Stock-to-flow creator says that the top is "nowhere near." | Source: Plan B on Twitter
Regardless of the intraday noises, this bull run is “nowhere near the top”. Plan B claims this is due to both the modified S2FX model’s predictions and outrageously bullish on-chain metrics.
The S2F developer is backed by other top crypto analysts who point to fundamentals that suggest that any further price hike is only a matter of time. There is less BTC on the exchanges, miners are no longer selling and much more in favor of the coin.
Warning: Bitcoin is overdue for a deeper correction of the timeframe
At this point in time, few who understand what Bitcoin has to offer the world expect less than hundreds of thousands of dollars per coin. The stock-to-flow model is almost a self-fulfilling prophecy in this regard. If enough believers expect this and hold it as the result, the chances are increased that it will actually be the final result.
Along the way, as the developer of the S2FX model says, Bitcoin is volatile and this is likely to remain a key factor for its long-term growth. Even if the top is miles or months away, that doesn’t mean the trending cryptocurrency can’t retest lower levels.
The fifth month after breaking the former ATH acts as the bull market bounce bottom | Source: BTCUSD on TradingView.com
According to a technical look at past cycles, Bitcoin is facing a higher timeframe shakeout of epic proportions. Each bottom tends to occur at the fifth monthly candle after breaking the previous all-time high.
In 2013, Bitcoin fell 74% from the breakout high to the rebound low. Over the next four months, it rose from $ 64 per coin to $ 1,200. In 2017, Bitcoin fell 36% to $ 3,000 and rose to $ 20,000 in three months. The same zone acted as the recent bear market low.
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The current consolidation could build a similar base type. However, the base building could finish down on a fake it has done in the past before going into the final stage of the bull run. The final phase is where most of the profits are made, resulting in another 1500 and 500% ROI from the previous two cycles.
If that prediction is correct, a crash could ensue, questioning investors that the top has been reached. But as the S2F developer says, this is nowhere near the case, and the move is a rather normal volatility on the way to much higher prices.
Featured image from Deposit Photos, Charts from TradingView.com