A New Bitcoin Price Model Suggests That BTC Won’t Go Below $39,000
According to a new combination of two powerful Bitcoin metrics tool, BTC should cost at least $39,000 going forward.
A popular on-chain analyst William Clemente presented a new model called ‘illiquid supply floor’ chart, which is a combination of Plan B’s infamous Stock-to-flow model and Glassnode’s illiquid supply data.
The prediction of the model is, as is, bullish for Bitcoin.
Introducing: Illiquid Supply Floor
This combines Glassnode's illiquid supply data with Plan B's traditional S2F model, creating a price floor based on Bitcoin's real-time scarcity. Currently $39K
With exchange reserves dwindling and major corporate buy-ins expected to be announced in the coming weeks, analysts are all but guaranteeing BTC price upside.
Long-term holders are now in possession of more of the supply than at any time since October 2020.
Now, illiquid supply data has been combined with the popular and highly accurate stock-to-flow Bitcoin price model to form a new minimum price for BTC/USD.
As Clemente described, it is “a price floor based on Bitcoin’s real-time scarcity.”
The new model shows a lower boundary for BTC/USD as being $39,000 as of this week — a level that neatly lines up with current technical predictions of where the pair should bounce in the event of a reversal.
Bitcoin illiquid supply floor chart. Source: William Clemente/Twitter
Bloomberg eyes “significant advance” in 2021
Stock-to-flow has long demanded stronger performance from Bitcoin spot price, and its creator, PlanB, continues to stick by a $135,000 “worst case scenario” end-of-year close.
Bloomberg Intelligence in its recent research gave renewed credence to $100,000 coming true for BTC/USD in 2021.
Chief analyst Mike McGlone tweeted:
“Past Bitcoin trading trends and the crypto’s declining supply vs. mainstream adoption suggest a significant advance in 2021, potentially to $100,000, we believe.”
Can Bitcoin Reach $100,000 in 2021? Five Charts Show Potential – Past #Bitcoin trading trends and the crypto's declining supply vs. mainstream adoption suggest a significant advance in 2021, potentially to $100,000, we believe. pic.twitter.com/0tH7PS7QEI
