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Is there a ‘bullish ace up its sleeve’ for Bitcoin?
The price of Bitcoin, the world’s largest cryptocurrency, has been consolidating, leaving many investors wondering if Bitcoin will recover from this cycle. If so, when will it happen?
Consider this: in April 2021, the price of Bitcoin was at an all-time high, hovering about $64,000. At the time of writing, it was trading just under the $40k level. The graph below depicts bitcoin’s decreasing trajectory.
Will Bitcoin rise?
Regardless of the market’s gloomy mood, many analysts have remained solid in their projections for bitcoin’s destiny.
PlanB, the author of the famed stock-to-flow Bitcoin model, presented his positive viewpoint and even supported it with his price research methodology.
In a subsequent tweet, he remarked, “$288K still in play.”
He went on to say,
“It would really surprise me if bitcoin would not touch the black S2FX model line this phase. Regardless of current volatility, yellow-green and blue dots will be (much) higher than red-orange dots.”
Here’s how the plot looks like as per S2FX model,
The crypto specialist stayed staunch in his earlier price forecast.
According to the S2F model, Bitcoin is worth an average of $100,000. Another expert commented on the recent decline, saying, “It’s been a long time since the price has been this far below the S2F line.”
Another tweet by PlanB addresses the current deviation from the S2F model.
$288K still in play. It would really surprise me if #bitcoin would not touch the black S2FX model line this phase. Regardless of current volatility, yellow green and blue dots will be (much) higher than red orange dots. pic.twitter.com/np26ypO96X
— PlanB (@100trillionUSD) June 12, 2021
So, should you buy the current dip?
With most of the market still bearish about the digital asset, many have questioned if they ought to buy the dip or just stay idle. Alex Kruger, another analyst stated:
For the long term investor bitcoin at $35,000 is cheap.
— Alex Krüger (@krugermacro) June 13, 2021
Following the same thread, he further stated,
“Just play with the odds. What are the odds of 150K in four years, and what are the odds of 10K in four years and so on.”
Mike McGlone, senior commodity strategist at Bloomberg Intelligence in his recent tweet described Bitcoin’s fixed yet declining supply as a “bullish ace”.
“Bitcoin $100,000 has bullish Ace up its sleeve: Declining Supply — This year follows a cut in Bitcoin supply, making the price more likely to appreciate if past patterns hold.”