Quantitative analyst PlanB says Bitcoin is still on track to reach his bold end-of-year price prediction.
The pseudonymous analyst tells his 736,300 Twitter followers that the stock-to-flow model (S2F), which he popularized in the cryptocurrency space, still forecasts a six-figure price for BTC by Christmas.
“Baseline S2F forecast of $100,000 by Christmas still stands (or more precise: $100,000 average for this halving period 2020-2024).
On-chain (non-S2F) indicator shows no sign of a top yet (no red dots). This is in line with S2F forecast.”
The stock-to-flow model, typically used in valuing traditional assets, aims to predict price by measuring existing supply against production rate.
Bitcoin is trading at $52,590.02 at time of writing and is up more than 11% on the week and nearly 18% on the month, according to CoinGecko.
PlanB also says BTC’s relative strength index (RSI), which measures the momentum of a given asset, is still well below a key level, indicating that Bitcoin has more room to grow as it is far from an overheated market.
“Weekly RSI (relative strength index) is 60. Look at when we last recovered from a below-60-period: Oct 2020, BTC at $10,000, price then pumped 5x, RSI hit 90 and stayed above 70 for 6 months.
Also look at 2013 and 2017 bull markets: multiple periods with RSI in 70-90 range.”
Featured Image: Shutterstock/Swill Klitch