- PlanB uses the Stock-to-Flow model to predict Bitcoin’s rise to $500,000.
- According to PlanB’s analysis, the recent Bitcoin consolidation around $70,000 is setting the stage for a bullish trend.
Bitcoin [BTC] continues to be in the spotlight, especially after recent market consolidations.
Despite current trading just below $70,000 with minimal fluctuations over the past week, renowned crypto analyst PlanB has shared insights that could herald a significant rebound for the cryptocurrency.
PlanB, a seasoned analyst known for his accurate predictions, outlined a potential rise in Bitcoin’s price after the latest halving.
In a detailed analysishe used his proprietary Bitcoin Stock-to-Flow (S2F) model, among other chart indicators, to draw parallels to previous bull cycles, suggesting a nascent bull run is on the horizon.
Understanding the S2F model and market cycles
The Stock-to-Flow model, which measures the current supply of a commodity versus the flow of production, indicates that Bitcoin is gearing up for an exponential rise.
According to PlanB’s latest analysis, last month’s end above $67,000 signals the start of a new cycle, potentially mirroring the post-halving spikes we’ve seen in previous years.
The analyst’s projections peg Bitcoin at a staggering $500,000 in the coming cycle, highlighting the pattern followed in previous bull runs.
This prediction is supported by PlanB’s research on the Bitcoin Market Cycle indicator, which confirms the entry into a bull market phase.
However, the analyst advises patience, suggesting that real momentum will begin once a rapid price increase begins.
This was further confirmed by the Relative Strength Index (RSI) readings, which currently resemble those prior to the 2012 bull run, indicating early stages of a bullish trend.
Adding to the bullish outlook, PlanB discussed the Bitcoin 200 Week Moving Average (WMA), which is trending upward – a sign traditionally seen as a precursor to a bull market.
The alignment of the 200 WMA with current market signals suggests that Bitcoin could soon cross the $100,000 mark.
Furthermore, the Bitcoin Realized Price indicator, which assesses the profit ratio of coins moving on-chain, matches historical data to further support the bullish scenario.
PlanB expects that Bitcoin’s price will not fall below $64,000 before the expected rally begins.
Following PlanB’s Bitcoin predictions
PlanB is not new to making bold predictions in the cryptocurrency space.
With a history of accurate predictions, the analyst was recognized for his foresight in 2020 when, despite widespread skepticism and a market flooded with fear, uncertainty and doubt (FUD), he predicted Bitcoin would reach $55,000.
True to its projection, Bitcoin will not only reach that goal in 2021, but fly past it.
However, financial markets are inherently uncertain and not all PlanB predictions have come true as expected. For example, he has long maintained that Bitcoin would reach the $100,000 milestone.
Although he predicted this performance for 2021, Bitcoin fell short of this target. Despite not reaching the expected $100,000, Bitcoin still achieved a major milestone by surpassing $69,000 for the first time that year.
As PlanB revisits its $100,000 Bitcoin forecast, it is crucial to examine the underlying fundamentals. Market facts van Santiment shows a downward trend in Bitcoin’s 7-day active addresses, indicating a possible decline in market participation or trading activity.
Source: Santiment
At the same time, BTC’s Gini index stands at 0.985, indicating a high concentration of wealth among holders, which could impact price volatility and trading behavior.
Bitcoin’s is more positive open interest– a measure of the total number of outstanding derivative contracts that have not yet been settled – has shown significant growth.
In the last 24 hours alone, this metric has risen 1.36%, with the total valuation rising to $35.83 billion.
Source: Coinglass
Read Bitcoin’s [BTC] Price forecast 2024-2025
This increase, along with an open interest value increase of almost 25% over the same period, indicates bullish sentiment among traders.
AMBCrypto supports this optimistic view reported that Bitcoin has formed an asymmetrical triangle on the 4-hour chart, a formation that typically precedes significant price movement, potentially allowing BTC to rise to $74,400.