The first analyst to apply the stock-to-flow model to Bitcoin is predicting that the leading crypto asset could meteorically rise in the following months as BTC continues to hold its ground in the midst of bearish news.
In a new tweet, PlanB tells his 457,000 followers not to rule out a massive Bitcoin rally in the coming months, as the flagship cryptocurrency remains strong amid an influx of bearish catalysts.
“Net result (after Turkey ban, US tax FUD, Faketoshi lawsuits, Elon/Tesla energy FUD) is that Bitcoin is 5x higher than ~6 months ago. And both stock-to-flow model + on-chain data indicate that we are only halfway through this bull market. I would not be surprised to see another 5x next ~6 months.”
The crypto analyst adds that the current Bitcoin bull market appears to be following the footsteps of the 2013 boom cycle where BTC surged 10x in a matter of months.
“Yes, markets are (as always) probably overreacting to Elon’s betrayal, so beware you don’t miss the possible gigantic spike back up (like the 2nd half of 2013 bull market: if you sold below $100 on the news that US government seized MtGox accounts, then you missed the spike to $1000)… In today’s terms that would be a jump from $50,000 to $500,000.”
As for why PlanB believes Bitcoin continues to consolidate, the analyst posits that investors who bought at lower prices are currently taking profits.
“We want, ‘all models to be broken’ and $100,000 BTC now. Truth is that it takes time. Some investors with 5x profits last couple of months, do not care about the Byzantine General problem or ECDSA (elliptic curve digital signature algorithm, SHA256 (secure hash algorithm), or P2P (peer to peer). They trade numbers on the screen and take profit. Patience is a virtue.”
Disclaimer: Opinions expressed at cryptotrade247.eu are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. cryptotrade247.eu does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is cryptotrade247.eu an investment advisor. Please note that cryptotrade247.eu participates in affiliate marketing.
Featured Image: Shutterstock/pzAxe