Bitcoin Set For $288K Bull Run In 2020, Popular BTC Price Model Says

Bitcoin Set For $288K Bull Run In 2020, Popular BTC Price Model Says

Authored by William Suberg via,

The latest update of Bitcoin’s S2FX price model shows July is beginning exactly as required for a long-term bullish trajectory to continue.

image courtesy of CoinTelegraph

Bitcoin (BTC) may be struggling to hit $10,000, but its progress is right on track, new stock-to-flow data confirms.

Adding a new update to his model on July 1, stock-to-flow model creator PlanB showed that Bitcoin is behaving exactly as its bullish history demands.

Bitcoin adds second “red dot”

The BTC S2F Cross Asset Model, or S2FX, uses color-coded dots to analyze Bitcoin price action relative to the date of its next block reward halving.

Dots immediately after halving, like at present, are in red and historically precede a jump in Bitcoin’s price, which PlanB often refers to as being higher by “an order of magnitude.”

Reflected in the model, the next order of magnitude shift is imminent — it should start before the end of 2020. Between then and the next halving in 2024, the model focuses on a price of $288,000 for BTC/USD, with the potential for much higher peaks.

“#Bitcoin S2F chart update .. RED DOT #2,” PlanB summarized on Twitter, referring to June and July’s markings on the chart.

Stock-to-flow remains a steadfast bullish take on long-term Bitcoin price action, despite fielding considerable criticism this year. 

PlanB maintains that those critics have yet to produce a viable alternative to his model, which has traditionally tracked price behavior extremely accurately. 

Bitcoin S2FX price model as of July 1. Source: PlanB/ Twitter

“Typical” month could spark $12,000 BTC price 

Analyzing monthly returns during the last halving period from 2016 to 2020, PlanB highlighted the “very asymmetrical” nature of Bitcoin price performance. 

As such, for BTC/USD to leave its current stagnant levels at around $9,000 and hit $12,000, all that is needed is a “typical” month of solid 30% gains.

Bitcoin monthly returns during the last halving period. Source: PlanB/Twitter

Nonetheless, Bitcoin’s considerable correlation to the S&P 500 forms a focus for macro factors dictating likely resistance to even $10,000. 

Against a backdrop of pressure on stock markets, analysts broadly expect that BTC/USD will continue to act in line with macro swings — no matter how intense these become.

Tone Vays, for example, has stated he does not believe that the pair will go above $10,000 until 2021.

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