BTC Pricing Model Creator Says Bitcoin Bull Market “Has Started Second Leg”

Bitcoin (BTC), which hit a new high of $ 67,000 last week, opened the door for the opportunity to hit $ 100,000 by the end of the year.

According to PlanB, creator of the popular stock-to-flow (S2F) model, Bitcoin’s $ 60,000 decline has been called the “second leg” of a seemingly long-term bull market.

In doing so, the analyst with the nickname, who quoted S2F, predicts that Bitcoin will continue to rise and reach $ 100,000 to $ 135,000 by the end of the year.

The price prediction model claims that Bitcoin’s value will continue to rise at least as much as $ 288,000 per token due to the “halving,” an event that occurs every four years that slows Bitcoin’s rate of issuance, to at least $ 288,000 per token in the supply cap.

The creator of the BTC pricing model says that the Bitcoin bull market
Bitcoin after halving in 2012, 2016 and 2020. Source: PlanB

It is noteworthy that Bitcoin has gone through three halving so far in 2012, 2016 and 2020.

Each event reduces the new supply rate of the cryptocurrency by 50%, resulting in a significant increase in the BTC price. For example, the first two halves saw the price of BTC rise more than 10,000% and 2,960% respectively.

The third halving saw the price jump from $ 8,787 to a high of $ 66,999, an increase of 667.50%. So far, S2F has been largely accurate in predicting Bitcoin’s price action, as shown in the chart below, giving the bulls greater hopes that Bitcoin’s rally will cross the $ 100,000 mark after the halving.

The creator of the BTC pricing model says that the Bitcoin bull market
Bitcoin S2F from October 26th. Source: PlanB

PlanB stated earlier this year that Bitcoin will hit $ 98,000 in November and $ 135,000 in December of this year. in the past decade.

80% errors after that

Despite the high price forecasts, Bitcoin will still see major corrections in the future. PlanB assumes that the next crash will wipe out at least 80% of the value of Bitcoin’s market capitalization based on the same S2F model.

Related: A COVID-19 Vaccine Will Trigger Bitcoin “Crash” – Rich Dad Poor Dad Author

“Everyone is hoping that the superbike or ‘hyperbitcoinization’ will start now and that we won’t have a major crash after the next all-time high,” the analyst told Unchained.

“I hope we don’t see this breakdown, I think we will. I think we are ruled by greed now and fear later … and see another 80% less once we have a few hundred thousand dollars behind us. “

The creator of the BTC pricing model says the Bitcoin bull market
Daily BTC / USD price chart. Source: TradingView

But not everyone thinks the next adjustment will be as dramatic as the previous ones. Dan Morehead, CEO of Pantera Capital, said in mid-October that the next Bitcoin halving would be less than 80%, citing a steady decline in sales sentiment after each halving cycle.

Bitcoin (BTC) hit a new record high of around $ 67,000 last week after rising 53% so far in October. But the new high spurred traders to profit-taking, which re-tested the $ 60,000 support.

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