There are many well-known and popular models to be able to say something about the bitcoin price. But the most popular has to be the stock-to-flow model of the Dutchman PlanB. And this model is still showing positive signs and a possible second leg for the current bull market.
Bull run not over yet
According to PlanB, the brainchild behind the much-discussed Bitcoin stock-to-flow model, the bull market is far from over. In a tweet today, the analyst shared an update to the model showing that the target white line and on-chain price signals indicate we are only in the middle of this cycle.
The target price for the fourth cycle is well above $100k ($85k), and this could be reached anytime in the next three years if the bitcoin price respects that model. When asked how he came to such a conclusion, he replied:
Both #bitcoin S2F (white line) and on-chain signal (color, not red yet) still indicating a 2nd leg of this bull market. pic.twitter.com/ZthR7sd0BA
— PlanB (@100trillionUSD) August 17, 2021
Scarcity determines price
It stock-to-flow (S2F) -model of the analyst was first shared in March 2019. This model examines the relationship between supply production and current available supply, essentially calculating the value of bitcoin by scarcity. The model has been quite accurate so far during Bitcoin’s lifetime, and the creator still claims that prices need to go much further during this cycle:
‘IMO we’re going up, first to 100k, then 288k’
Earlier this month, the Dutchman said that the model ran ‘like clockwork’ when bitcoin closed the month of July above 41 thousand dollars.
#bitcoin July closing price $41,490 … it bounced from the lows, like clockwork pic.twitter.com/xZIlbaBBqI
— PlanB (@100trillionUSD) August 1, 2021
The Big Reset
Can bitcoin become worth $228,000? If it’s up to PlanB, yes, because of his ‘normal’ job, he prefers to keep his identity to himself. Sometimes he appears in podcasts, but he never shows his face. Speaking of which, PlanB was a guest on episode 385 of the podcast together with Willem Middelkoop What Bitcoin Did. Host Peter McCormack discusses with his two guests the model of PlanB, gold and The Big Reset. Recommended!
–
