The inventor of Bitcoin’s stock-to-flow (S2F) model says that despite the bearish outlook, the BTC price has the potential to grow 5x. The analyst supports his claim through the S2F model, which claims the future price of Bitcoin based on its circulating supply relative to the number of Bitcoins mined each year.
Plan B’s stock-to-flow model claims Bitcoin price has 5x potential
Popular Twitter analyst Plan B is the name behind the Bitcoin S2F model. The anonymous analyst with twenty years of experience in finance predicted $100,000 for BTC last year. The S2F model gained popularity in March 2019, following its release. S2F is a widely accepted system for assuming Bitcoin price based on its scarcity. The underlying idea is that scarcity drives up the price of Bitcoin. Therefore, measuring scarcity helps to hypothesize the price of Bitcoin.
What is S2F? What is the estimate based on?
The S2F model predicts the price based on its circulating supply relative to the measure of BTC issued each year. During halvings, Bitcoin’s miner rewards decrease by 50 percent every four years. This plays an important role in Bitcoin’s rally compared to the S2F model.
In a recent tweet, Plan B shared new information to improve the 2019 Bitcoin S2F model. This time, he revealed the new aims of the model with a white dotted line. Plan B sets a bullish goal for BTC in the $100,000 to $1 million range. It asks users to interpret this as “BTC will increase by at least 5x”.
Analysts defend bullish outlook in Bitcoin
Despite bear market conditions and assumptions, the analyst nicknamed Crypto Prof has set a target of $68,000 for Bitcoin price through Elliott Wave Theory. The analyst believes that the Bitcoin price has a good chance of returning to $68,000 in the next few months, as it has in the last two cycles. Crypto Prof also predicts that the Bitcoin floor is a sign of the upcoming rally.
The Descending Widening Wedge (DBW) is a bullish chart pattern formed by two different bullish lines, which is considered an opposite pattern. The Descending Widening Wedge is confirmed if there is a smooth oscillation in the middle of the two upper truth lines. Crypto Prof has recently detected a DBW on the Bitcoin price chart.
Koindeks.com As you follow, BTC is currently trading above $19,000. Analysts’ assumptions must rise above 70% from current levels to be true. BTC has failed countless times, notably turning the $20,000 level into reinforcements. According to many analysts, it is quite critical for him to break this level before losing $ 18,500.