Bitcoin fell below $ 50,000 on Friday. The pioneering cryptocurrency is currently trading at around $ 49,405 at 11:10 GMT. In the past 24 hours, the coin lost 8.9%, a massive loss for traders and investors.
However, stock-to-flow model developer PlanB said it was relieved that the coin lost over 22% in just one week. To say that Bitcoin is still “acting like clockwork” in terms of their price predictions.
“I’m kind of relieved,” says PlanB
In a tweet on Friday, analyst PlanB noted that the drop in prices to below $ 48,000 has brought BTC below the target set by its stock-to-flow model. Because of this, Bitcoin is no longer a “front-running” warehouse flow.
After the benchmark’s cryptocurrency traded above the required level, the quant analyst suggested that the coin’s price movement become inorganic.
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“I’m relieved that the BTC price is now below the s2f model value again,” he wrote in a conversation with the author of “The Bitcoin Standard”, Saifedean Ammous, who described PlanB’s predictions as “amazing”.
“For a moment I thought that people were running the model in front and that the super cycle had started. Now we’re back to normal … like clockwork, ”added PlanB.
Amazing even to me. By the way, I’m kind of relieved that the BTC price is now below the s2f model value again. For a moment I thought that the people in the front were out with the model and that the super cycle had started. Now we’re back to normal … like clockwork. pic.twitter.com/BRHs30MPvJ
– PlanB (@ $ 100 trillion) April 23, 2021
The cross-asset Stock-to-Flow and Stock-to-Flow (S2F) (S2FX) requires an average BTC / USD price of $ 100,000 or $ 288,000 through 2024. This is the expected super cycle.
PlanB said he believed Bitcoin wouldn’t stop at $ 100,000, which should hit it this year.
“Bitcoiners are often too bullish on the bull market and too bearish on the bear market! I don’t think we’re doing supercycling this time either, ”answered podcast presenter Stephan Livera Ammous.
Bitcoin price took a sharp dive below $50,000 | Source: BTCUSD on TradingView.com
Sentiment and market indications
Immediately the market fell below $ 50,000. The notorious gold bug and cryptoskeptic Peter Schiiff was also quick to comment on the market action and made fun of Bitcoin proponent Anthony Pompliano. He tweeted:
“Now that Bitcoin is back below $ 50,000, it’s time for @APompliano to tweet $ 1,000 milestones on the way down, as it did on the way up . “
Now that #Bitcoin is back below $ 50,000, it’s time for @APompliano to tweet $ 1,000 milestones on the way down like he did on the way up .
– Peter Schiff (@PeterSchiff), April 23, 2021
Pompliano replied, “Bitcoin has increased 600% in the last year. Gold is up 3% in the last year. No more tweeting until gold can beat inflation, Peter! “
However, it has been said that various factors are causing the current decline.
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Some analysts noted that CME futures are now trading below the spot rate at the start of the bear market, as well as a negative Coinbase premium.
If the Coinbase premium is positive, it indicates an upward move. But the opposite is also the case when Coinbase’s spot price is lower than Binance’s. Important sell orders on Coinbase, each of which causes a brief increase in the spot price in the order book.
The Crypto Fear & Greed Index also stayed in the “greed” territory despite falling to monthly lows, which still suggests that sentiment has not yet been reset.
Featured image from Pixabay, Charts from TradingView.com