Bitcoin is releasing third monthly red candle with a reverberant stock-to-flow price pattern in early 2019

Bitcoin (BTC) closed its third straight monthly red candle this week as a prominent analyst compared BTC’s price action to January 2019.

In one tweet On July 1, PlanB said that BTC / USD is now furthest away from its inventory flow model estimates in over two years.

Stock-to-flow “Make or Break”

After the massive speculative event in May, Bitcoin price action failed to regain lost ground, roughly 50% below its recent all-time highs.

As a result, price patterns are being tested seriously – even if the indicators in the chain begin to turn bullish again.

The situation becomes precarious with the inventory flows, which require an average price of at least $ 100,000 during this halving cycle.

This model is known for its accuracy and has accounted for every move in the BTC price movement since its inception. At the moment, however, the spot price is approaching the limit of what it can absorb.

“Even for me, it was always a bit unsafe when Bitcoin prices are at the lower end of the stock-to-flow model,” PlanB admitted last week.

However, given the possible changes in Bitcoin over the course of several months, there is little to worry about the securities falling into nowhere.

“The closing price in June was $ 35,037, much lower than the S2F model in January 2019,” PlanB added on Thursday, indicating that the pattern’s relationship to price remains “active”.

The next 6 months will be decisive for S2F (again). “

Last time, Bitcoin was far from the stock flow suspect At $ 77,760 on Thursday, BTC / USD has just emerged from the 2018 bear market pit, where it fell to just $ 3,100.

A correction is in the starting blocks?

As Cointelegraph reported, the price game with the on-chain indicators has become a special story in the last few weeks.

Relatives: Coincidence? Bitcoin experiences its highs and lows on the “round Tuesdays” in June

Measures such as the popular Puell Multiple suggest that price lows are in sight, consistent with historical precedents, with some implicit setbacks to watch out for.

still seems to follow -25% #bitcoin difficult to adjust for friday. https://t.co/TuqYAFU1wU Bitcoins are not affected, tick the next block. Profit exploitation pic.twitter.com/yONPd88xJq

– Adam back (@ adam3us) June 29, 2021

The ongoing resettlement of miners from China will also be less of a concern after completion. The mining difficulty level will hit its biggest drop ever this weekend due to volatility, which will quickly increase miners’ profits and attract some mining power.