Why Plan B predicts 5x rally in Bitcoin price using stock-to-flow model
- The creator of the Bitcoin stock-to-float model believes the Bitcoin price could rise to a wide range of $100,000 to $1 million.
- Plan B claims that the Bitcoin price is poised for 5x growth based on the stock-to-flow model projections.
- Analysts identify a descending widening wedge in Bitcoin price chart and reveal bullish outlook on BTC.
Creator of Bitcoin’s stock-to-flow (S2F) model believes BTC price has potential to grow 5x despite bearish outlook. The analyst supports his prediction through the S2F model which predicts the future price of Bitcoin based on the circulating supply in relation to the number of BTC mined each year.
Also read: Bitcoin Price: BTC struggles to stay afloat amid reverse currency war
Plan B’s stock-to-flow model predicts that the Bitcoin price has the potential for 5x
The idea of the Bitcoin stock-to-flow model was introduced by its creator Plan B, a pseudonymous investor with over two decades of experience in quantitative finance. The S2F model became popular in March 2019 after its publication. S2F is considered a widely accepted method of predicting Bitcoin price based on its scarcity. The underlying idea is that scarcity drives Bitcoin’s price higher. Therefore, quantifying scarcity can help predict the Bitcoin price.
Plan B’s stock-to-flow model predicts the future price of Bitcoin based on the circulating supply relative to the amount of coins mined each year. The number of coins mined is reduced by 50% every four years through a mechanism known as “halving”. This plays a key role in Bitcoin’s rally, according to the S2F model.
In a recent tweet, Plan B included new data to improve the 2019 Bitcoin S2F model and represented it through a white dashed line. Plan B has set a bullish target of $100,000 to the $1 million range for Bitcoin and tells users to read that as “BTC will increase at least 5x”.
Bitcoin stock-to-flow (S2F) model
Analysts defend a bullish view on Bitcoin, setting a target of $68,000
Despite bearish market conditions and predictions, Crypto Prof, a pseudonymous analyst and trader, has set a target of $68,000 for the Bitcoin price through Elliott Wave Theory. The analyst believes Bitcoin price has a good chance to return to Wave B ($68,000) in the next few months, as it did in the last two cycles.
Crypto Prof also predicts that the Bitcoin bottom is an indicator of the upcoming rally in the asset.
Bitcoin USD exchange rate chart
Descending Broadening Wedge (DBW) is a bullish chart pattern, considered a reversal pattern, formed by two diverging bullish lines. A descending expanding wedge is confirmed if it has good swing between two ascending lines.
Crypto Prof recently identified a DBW in the Bitcoin price chart.
Bitcoin-USD exchange rate chart 2013-2022
