There are many price models based on which the future predictions of Bitcoin are made. One of them is the stock-to-flow model, which is bullish about Bitcoin. In the next few months, the price action of the currency will be important to observe. This is because if positive, Bitcoin will reach $100k by Christmas, suggests the model. But wait, do not rush to buy Bitcoin right now; there are few more scenarios to consider for this.
The positive price analysis
Whatever we take a look at here was shared by Plan B, an anonymous Bitcoin analyst. He has recently shared his views on the future price of BTC based on the S2F model. In simple terms, it takes the main advantage of Bitcoin scarcity plus the number of issuing tokens in a year. This means one of the primary angles to this is the demand+supply factor.
The S2F model has a lot of supporters who believe that it is correct and are super bullish about BTC. On the other hand, many think that there is a lot more to consider while predicting BTC’s price. A simple demand-supply story doesn’t purely justify the price action of BTC. Considering that we are one of the believers, the bull run can be considered far from over. And as said, the next few months will be important.
A problem
When using the S2F model for Bitcoin, it is important to note that the model shows the fair value of BTC at the time. And one can compare the up or downside movement based on that. Now, if you consider the S2F model, Bitcoin is now below the fair value. But at the same time, if you consider the Time model, it is above that level. So, all in all, it is difficult to accurately predict where we will be in the next few months. In fact, the daily RSI is also showing a bearish divergence which is not good for this bull run.
Ultimately BTC will cross 6 digits and maybe even 7, but it is important to note that it might not happen this year and take a lot more time. So, invest money that you are okay to stay away from for the next few years.
What are your thoughts on the S2F model that showed Bitcoin would reach $100k by Christmas? And do you prefer it over the time model? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Indians are adopting cryptocurrency faster than other nations.
