Crypto Daily - Renowned Bitcoin analyst PlanB has recently updated his Stock-to-flow model and from this data he predicts a cycle top for Bitcoin of $500,000. He predicts a strong surge following the halving cycle, and that the $100,000 level should be reached soon.
Previous cycles give a reliable prediction
According to PlanB, the previous cycles for Bitcoin are a good indicator for what is about to happen this time. He sees Bitcoin pumping now that the halving has occurred and says that his model predicts $500,000 this cycle, and $4 million the cycle that follows.
Positive indicators
PlanB has updated his Stock-to-flow model for Bitcoin with 5 years of new data. He comments that this makes the model much more accurate, and simpler to understand.
The analyst points to how the RSI (Relative Strength Indicator) has accurately predicted prices in previous cycles, and he believes that this indicator is acting the same for this cycle.
The gradual rise in the 200-week moving average for Bitcoin is another likely indicator of higher prices, and he believes that this gives the king of the cryptocurrencies the potential to reach $100,000 quite soon.
Finally, PlanB highlights how the vast majority of Bitcoin holders are still in profit (93%), and he feels that this provides a very positive sentiment which is likely to keep the price driving higher.
Current price action
Looking at the latest price action for Bitcoin on the daily time frame one can see that a breakout of the bull flag could be close. The two important levels of resistance and support are at $71,300 and $61,000 respectively. A break above the top bull flag trend line, and the resistance at $71,000 would see the price close to an all-time high, while breaking below $61,000 could put the uptrend into some trouble.
As per PlanB’s observations, this current cycle still has to play out, and given that it is still early and the trend is up, higher prices are far more likely than not over the coming months. It just remains to be seen just how far Bitcoin can go.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.