One of the most closely followed crypto analysts in the industry says he thinks Bitcoin is likely to stage a major comeback and return to $10,000 – before the new year. That leaves 39 days for BTC to surge roughly $3,000 from its current price around $7,000.
According to the anonymous analyst known as PlanB the asset’s stock-to-flow ratio is flashing a rare buy opportunity, suggesting a turnaround is on the horizon.
“Call me crazy, but it wouldn’t surprise me if BTC closes 2019 at $10k+.
Opportunities like this (Bitcoin below S2F model value, 6 months before the halving) are rare.
Stock-to-flow compares the amount of a commodity in circulation divided by the amount produced per year.
The model, which is traditionally used to analyze precious metal markets, gained notoriety in crypto circles this year and earned a number of mentions on CNBC by anchor Joe Kernen.
According to PlanB, the ratio tracks Bitcoin’s past price movements with more than 90% accuracy, and indicates BTC will reach $1,000,000 around 2025.
In the short term, a recent roundup of analysts shows most believe BTC has not yet reached a bottom.
Veteran trader Tone Vays remains the most bearish. He believes BTC will reach $4,500 before a new, sustainable bull market can begin.
Bitcoin is up 0.84% at time of publishing at $7,193, according to CoinMarketCap.