- 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
Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off
Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration
In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.
Bitcoin dives 3% from its recent all-time high, is this the cycle top?
Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.