- Creator of the Bitcoin stock-to-flow model believes Bitcoin price could rally to the wide $100,000 to $1 million range.
- Plan B argues that Bitcoin price is ready for 5x growth based on the stock-to-flow model projections.
- Analysts identify a descending broadening wedge in Bitcoin price chart and reveal bullish outlook on BTC.
Creator of Bitcoin’s stock-to-flow (S2F) model believes BTC price has the potential to grow 5x despite the bearish outlook. The analyst backs his prediction through the S2F model that predicts the future price of Bitcoin based on its circulating supply relative to the number of BTC mined every year.
Also read: Bitcoin price: BTC struggles to stay afloat amid reverse currency war
Plan B’s stock-to-flow model predicts Bitcoin price has potential for 5x
The idea of the Bitcoin stock-to-flow model was introduced by creator Plan B, a pseudonymous investor with over two decades of experience in quantitative finance. The S2F model gained popularity in March 2019 after its publication. S2F is considered a widely accepted method for predicting Bitcoin price based on its scarcity. The underlying idea is 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 its circulating supply relative to the amount of coins mined each year. The number of coins mined decreases by 50% each 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 dotted line. Plan B has set a bullish target of the $100,000 to $1 million range for Bitcoin and asks users to read it as "BTC will increase at least 5x".
Bitcoin stock-to-flow model (S2F)
Analysts defend bullish outlook on Bitcoin, set $68,000 target
Despite bearish market conditions and predictions, Crypto Prof, a pseudonymous analyst and trader, has set a $68,000 target for Bitcoin price through the Elliott Wave Theory. The analyst believes Bitcoin price has a good chance of returning 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 price chart
Descending Broadening Wedge (DBW) is a bullish chart pattern, considered a reversal pattern, formed by two diverging bullish lines. A Descending Broadening Wedge is confirmed if it has good oscillation between two upward lines.
Crypto Prof recently identified a DBW in the Bitcoin price chart.
Bitcoin-USD price chart 2013-2022
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory. Ethereum and Solana also retained gains of 7% and 4%, respectively, following the rate cut.
XRP sees bullish momentum following $123 million increase in open interest
XRP exchange reserves in Binance and Upbit have declined by nearly $13 million. In the past three days, investors opened over $123 million worth of XRP positions. XRP needs to overcome key descending trendline resistance to stage a rally to $0.6640.
Coinbase launches wrapped Bitcoin token on Solana network
Crypto exchange Coinbase announced on Thursday that it has launched its synthetic Bitcoin token, cbBTC token, on the Solana network, marking its first token issuance on the Layer-1 platform. The new token will allow users to stake Bitcoin on Solana and use it as lending collateral.
Solana Price Forecast: Investors stake $1.3B SOL amid November winning streak
Buoyed by Donald Trump's victory at the polls, the global crypto market entered its third consecutive day on an uptrend on November 7, 2024. Amid the ongoing rally, Solana emerged one of the biggest gainers on Thursday, as demand for native memecoins further propelled market demand for SOL.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.