Crypto analyst PlanB predicts Bitcoin entering a bull market, potentially reaching over $100,000 in 2023-2024 based on technical indicators and his stock-to-flow model.
Pointing to the stock-to-flow (S2F) model, the analyst explained why he sees Bitcoin potentially surpassing $100,000 in 2023 or 2024.
The stock-to-flow model is used by some analysts to predict the price of Bitcoin, arguing that its scarcity (as quantified by the stock-to-flow ratio) drives its value. The model suggests that as Bitcoin becomes scarcer (i.e., as its stock-to-flow ratio increases), its price should increase, assuming demand remains steady or grows.
“I think this is an indication, especially those last two months, those yellow dots, that the bull market is building around the corner,” said PlanB, referencing charts showing Bitcoin realized returns. The S2F model presumes that as the built-in supply halves every four years, Bitcoin could reach up to $532,000 by the next halving in 2024.
While PlanB believes it will take at least 5 more months for the “real bull market” to start, the analyst says a standard deviation is starting to form in the S2F model that should lead to a $55,000-$60,000 Bitcoin. Historically, the Bitcoin price touches this point after each halving and immediately prior to a rapid appreciation
In addition to the S2F model, PlanB showed various technical analysis indicators like the Relative Strength Index (RSI) and 200-week moving average that he says support the case for Bitcoin beginning an upward price trajectory.
If that happens again, which is what I assume, we will rise, not like in a full-fledged bull market, but we will rise slowly towards the next red dot, the next halving. And yeah, so that’s very interesting to see for the next couple of months.PlanB
After the next halving takes place, PlanB expects the market to calm down and take a breather. He expects the growth to stop for some time.
I expect that after the halving, by the way. So we’ll have to be patient for another couple of months, at least five months, I think. But it could be earlier as well. We’ll see.PlanB