Bitcoin, the most traded cryptocurrency in the market has a value of $9,531. The price recovered from below $9,400 margin levels. On the upside, the crypto traded a high around $9,700 but the BTC price couldn’t reach $10,000.
Today, one of the bitcoin analysts, an anonymous strategist with twitter handle “PlanB” has released an update on the stock-to-flow model, suggesting the bitcoin price could be about to surge to around $100,000.
According to the Stock-to-Flow (S2F) model by PlanB, a pseudonymous cryptocurrency analyst, Bitcoin could soon commence a rally targeting $100,000 by 2021. In his prediction shared on Twitter, the red dot on the chart shows a potential price increase. The S2F model treats BTC as a commodity, just like gold or silver. In this case, the model measures the supply of Bitcoin in relation to the coins mined.
PlanB’s model shows that Bitcoin’s stock-to-flow ratio increases as the rate of new BTC supply decreases over time. The crypto analyst also illustrates how the value of Bitcoin closely follows the cryptocurrency’s S2F ratio using dots, which represent the monthly closing price of BTC. The first red dot after a series of blue dots signifies the first month after each halving, an event that reduces the pace of new BTC entering circulation.
It is worth noting that the chart shows that Bitcoin’s S2F ratio has increased and now coincides with the appearance of the red dot in PlanB’s model – the first such dot in three years. Based on PlanB’s chart, a red dot indicates the start of a new bull cycle.
Bitcoin Price Analysis
At present bitcoin is trading at $9,541.76 with minor loss of -0.37%. The coin is holding the total market cap of $175,484,449,825 with 18,391,212 BTC circulating supply.
On the intraday chart, BTC/USD is hovering around 1-hour SMA50 amid growing market indecision, which is also confirmed by a flat RSI. The current conditions imply that the price may stay range-bound during the next trading hours.