Stock-to-Flow model maker comments on Bitcoin (BTC) price rally above $27,700

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Anonymous Bitcoin (BTC) analyst PlanB, the author of the stock-to-float pricing model, claims that with the recent rally to $27,700, the flagship crypto is returning to the “dark blue area” of his uber-bullish chart. As such, we are going to see another “peak” in this cycle, he concludes.

Bitcoin (BTC) back on track, new ATH possible soon, says PlanB

According to a thread shared by PlanB (@100trillionUSD) on Twitter, Bitcoin (BTC), the first cryptocurrency, is returning to its stock-to-flow pattern. As such, some variations of S2F models may be valid again and we should be ready for another all-time high in this cycle.

Before 2021, every bullish cycle of the Bitcoin (BTC) price ended with a peak (January 14, December 17). In 2021, however, it printed a “double top” pattern, setting highs in May and November. PlanB predicts that the next all-time high can also be reached before the next reduction of the mining reward. It will be the first bullish cycle of Bitcoin (BTC) with three peaks in a row.

Should this forecast be valid, Bitcoin (BTC) will reach a new high before April 2024. The previous ATH was recorded on November 10, 2021 at $68,789, according to CoinMarketCap data. PlanB admitted that he is not 100% sure of the validity of this proposal, but it does not seem impossible to him.

Last week was the most successful for the Bitcoin (BTC) price in almost two years. In seven days, it became the best performer of the top 25 assets by market capitalization: BTC price increased by over 36%, reaching levels not seen since June 2022. Today, March 18, 2023, in the early morning hours, it touched itself almost $28,000 on major spot exchanges.

Crypto Twitter excited about PlanB’s comeback

Some followers of PlanB’s Twitter noted that his super-optimistic predictions are only published when bullish sentiment dominates the market. The analyst dismissed such accusations: his “silence” should be attributed to impersonation attacks and Twitter algorithms.

No, I was shadowbanned by twitter. (…) 89 impersonators, spam bot attacks, troll armies, anything to stop people from seeing my tweets. I haven’t been away in a year and I’ve been tweeting every day

The stock-to-flow model of PlanB and his followers is based on the assumption that Bitcoin (BTC) becomes scarcer due to periodic reductions in emissions. With its scarcity, the price also goes up thanks to the law of supply and demand. However, in the bearish recession of 2022, the S2F model failed: BTC abandoned the pattern it had followed since the network’s launch.

It should be noted that Bitcoin (BTC) euphoria looks severely overheated today. The Crypto Fear and Greed Index by Alternative.me sees BTC sentiment at 64/100 in the “Greed Zone.” Ironically, the last time it was this high was when the Bitcoin (BTC) price set its last ATH in mid-November 2021.

However, some analysts are confident that this upswing is driven by fundamentals in the chain, not by artificial hype.