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Bitcoin would “surprise” the stock-to-flow developer if it failed to return to its anticipated trajectory three years before crunch time.
Bitcoin (BTC) can still reach an average price of $288,000 in the next three years, according to PlanB, despite a 7 percent drop in BTC/USD on June 12.
In a tweet on Saturday, the creator of the popular stock-to-flow Bitcoin price models cast aside doubts over the Bitcoin bull run continuing.
PlanB: Business as usual for BTC
PlanB was notoriously nonchalant about Bitcoin’s recent gain, despite a failure to break out over $40,000, with a chart characterising Bitcoin as “going for gold,”
As previously reported, worries from traders and external sources alike have grown over the past week, with the focus on a probable further BTC price fall.
“$288K still in play,” PlanB retorted.
“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.”
Such “surprise” would provide a serious test for the model, which has so far charted Bitcoin’s growth with unique precision.
The $288,000 price tag alludes to an average value required by the Stock-to-Flow Cross-Asset (S2FX) iteration, whereas an earlier edition required a more modest $100,000 average. Both are predicated on the current halves cycle, which is a four-year interval between block subsidy halvings that will finish in April 2024.
Previously, it was reported that the divergence of market prices from S2F readings had reached levels that would ordinarily result in a rebound and a new all-time high.
In additional comments, PlanB noted that 2021 really did fit with behavior from other all-time high years — 2013 and 2017 — further quashing suggestions that Bitcoin is facing serious problems.
“Deviation is not much different from 2013 (S2F ~10) or 2017 (S2F ~25), just the usual inertia after a halving,” he told Twitter users.
Bitcoin has a “bullish ace up its sleeve”
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, has added to the upbeat mood over the power of the halvings.
On Saturday, he described Bitcoin’s declining supply as a “bullish ace” for the largest cryptocurrency which can naturally boost price.
“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,” he summarized.
His optimism comes as nodes prepare to activate Taproot, which has been hailed as the most significant Bitcoin network improvement in four years.
Taproot, which is set to be released in November, has a slew of enhancements that will, among other things, make it more affordable to employ critical features like multisignature transactions.