PlanB, the creator of the stock-to-flow (S2F) model, predicts a breakout in the Bitcoin (BTC) price based on the historical price trends and the original 2019 $55k model. BTC has soared nearly 6% rising above the crucial $30,000 level in the last 6 hours.
PlanB believes the original S2F $55k model is right and the predicted 14X rise to $55k is worth more than the 2X prediction error of $100k. Moreover, both models point to $500k after the 2024 halving.
PlanB Predicts Bullish Momentum for Bitcoin (BTC)
The Bitcoin price seems to breakout above the $28k-$30k range as it enters the buying area. According to the S2F $55k model, the Bitcoin price has corrected massively and could rise strongly. Moreover, as reported previously, the BTC price seems to have possibly bottomed out.
Original 2019 $55K Bitcoin S2F Model. Source: PlanB “Even if the original $55K model was right and the later $100K update wrong, the difference is “only” 2X. Remember that S2F model was created in March 2019, when bitcoin was below $4K. IMO the correctly predicted 14X rise (55/4) is worth more than the 2X prediction error (100/55).”
Furthermore, the BTC price at its current levels seems similar to falls in 2015 and 2018/19. These falls followed a rally in the Bitcoin (BTC) price. The Bitcoin price has fallen below the moving average and realized Bitcoin price lines. Thus, a rebound above the $30,000 shows an upcoming bullish momentum.
Bitcoin Realized Price Moving Average. Source: PlanB
The Bitcoin (BTC) price is currently moving with huge volume as the price jumps to a high of $30,893 in the last few hours. If the trend continues, the BTC price will break above multiple resistance levels. In fact, a move above $32,000 will bring a strong rally.
