PlanB: Next 6 Months Will Make Or Break Bitcoin S2F Model
Popular, pseudonymous crypto analyst and trader, known as PlanB, who first applied Stock-to-flow model to Bitcoin, announced in a recent tweet that BTC/USD pair is now the furthest away from his stock-to-flow model’s estimates since January 2019.
June closing price $35,037 .. as far below S2F model as in Jan 2019. Next 6 months will be make or break for S2F (again). pic.twitter.com/W3TM5sOAwY
“Next 6 months will be make or break for S2F (again),” read his tweet.
Post market wide crash in May, Bitcoin price action has been unable to really regain lost ground. In fact, it has stayed around 50% below recent all-time highs. This is a serious stress test for price models, as on-chain indicators are taking on bullish appearances.
Stock-to-flow model for example, calls for an average price of at least $100,000 during this halving cycle. So far, the model has taken into account every twist and turn in BTC price ever since its inception. In fact, it has gained major popularity for its accuracy. It will be interesting to see how the model holds this time.
PlanB has commented earlier:
“Even for me it is always a bit uneasy when bitcoin price is at the lower bound of the stock-to-flow model.”
If the history is of any indication to Bitcoin’s future price, the coin is likely to recover. And it’s not the first time S2F bands are being tested, yet the model has held through.
