Bitcoin’s price has finally broken down the $3,000 barrier for the first time since July 2018. Following a fourth consecutive week in the red, Bitcoin has dipped below $3,000 for the first time since July 2019.
Bitcoin’s (BTC) latest monthly candle is a red one, falling below the bottom of its 5-year channel. The disappointing note is that the price model has failed to correct, despite a January bullish headline. This is an important trend that points to further weakness ahead.
Bitcoin posted its third monthly red candle today, with a red line below the moving average, which is usually used to predict a market turning point. If this trend continues, the Stock-to-Flow model predicts a test of $3,000 before the end of the year.. Read more about plan b bitcoin price prediction 2021 and let us know what you think.Bitcoin (BTC) closed its third consecutive red monthly candle this week, and one popular analyst compared BTC’s price action to January 2019.
In his tweet of the 1st. In July, PlanB reported that the BTC/USD exchange rate is now the furthest from its equity flow model estimates of the past two years.
Transition from stock to power – make or break
The price of bitcoin has been unable to regain the ground lost since its capitulation in May and remains about 50% below recent historical highs.
As a result, pricing models are highly questioned – even though channel indicators are once again flashing upwards.
In the case of equity flow, which requires an average price of at least $100,000 in this mid-low cycle, the situation becomes precarious.
The model is known for its accuracy and takes into account all fluctuations in the price of BTC since the beginning. However, the spot price is now approaching the limit he can bear.
Even I always feel a little uncomfortable when the price of bitcoin is on the low side of the stock-flow model, PlanB admitted last week.
Still, given the changes that may occur in bitcoin within the next few months, there is little reason to fear that the stock-flow ratio will become invalid.
The closing price of $35,037 in June was as lower than the S2F model as in January 2019, PlanB added Thursday, suggesting business as usual for the model-price ratio.
The next 6 months will (again) be crucial or decisive for S2F.
The last time bitcoin was so far out of the stock market stream it predicted a price of $77,760 on Thursday, BTC/USD had just climbed out of the 2018 bear market pit where it had fallen to just $3,100.
Bitcoin stock movement model of 1. July. Source: PlanB/ Twitter
Correctionin progress ?
As Cointelegraph reports, blockchain indicators have been catching up with price in recent weeks.
Related: Coincidence? In June, bitcoin showed its ups and downs on crucial Tuesdays.
Indicators such as the famous Pewell multiplier show a low price followed by an uptrend, based on historical precedents.
it looks like we’re still pursuing a -25% #bitcoin difficulty adjustment for Friday. https://t.co/TuqYAFU1wU bitcoin intact, tac next block. mining profitability pic.twitter.com/yONPd88xJq
– Adam Beck (@adam3us) 29. June 2021
Further offshoring of mining capacity from China should also be less of an issue once completed. This weekend’s upheaval will lead to the largest reduction in mining complexity in history, rapidly increasing miners’ profits and attracting new forces.Just for a recap; Bitcoin has given us the chance to make a lot of money by simply holding it long term (vis-à-vis the CME Group’s Bitcoin futures, which are up +200% since Jan. 1st). The longer you hold Bitcoin, the more money you make—which, in turn, encourages more people to hold it long term. In this case, we are talking in weeks and months, not years (or even decades). While this is a great way to make money, we also need to be sure that we don’t artificially inflate the price of Bitcoin. And that’s where the Stock-to-Flow model comes in.. Read more about plan b stock-to-flow chart and let us know what you think.
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