Great buying opportunity as Bitcoin trades 59% below the target price of the S2F model
Bitcoin has never been so far below the stock-to-flow target price as it was this week.
In a July 10 tweet, Lex Moskovski, chief investment officer at Moskovski Capital, pointed out that the stock-to-flow model marks a historic moment in Bitcoin’s 12-year life cycle.
“Excellent buying opportunity”
While BTC / USD is showing few signs of a real bullish recovery, the pair continues to drift away from the price range calculated by the stock-to-flow model.
Stock-to-flow is arguably the most popular of the Bitcoin price prediction models and has tracked BTC price movement with surprising accuracy. This model remains valid even in unusual times.
However, current behavior presents a challenge to stock-to-flow, and the price target has never been this far removed from reality.
“The negative stock-to-flow deviation is reaching an all-time high in the entire history of Bitcoin. This is a great buying opportunity if you are a fan of this model. “
difference Stock-to-flow Bitcoin (red) Compare with price BTC / USD (Gray) | Source: Lex Moskovski
According to the stock-to-flow multiple, BTC / USD is trading at $ 82,703 on Saturday, with the actual spot rate at the time of writing at $ 33,745 – 59% lower.
Stock-to-flow multiple (463d)
2021-07-09, 23:59 UTC
ln (actual / model)
Actual price: $ 33,914.88
Model price: $ 82,703.73
S2F multiple: -0.89 pic.twitter.com/AIsBrH6LMF
– S2F multiple (@ s2fmultiple) July 10, 2021
The creators of the PlanB model remain super bullish for 2021, their latest price forecast of 135,000 US dollars in December as the “worst-case scenario”, as reported by Bitcoin Magazine.
The analyst is currently not commenting on the events and is promising a return in August with a minimum price target of around $ 47,000.
paradigm Stock-to-flow of bitcoin from date 10/7 | Source: BuyBitcoinWorldwide.com
Stock-to-flow with a view of the suspect serious discount
PlanB has never ruled out the possibility of stock-to-flow being disabled at any point, and this could become a reality if the most bearish of scenarios materializes.
Among them, Scott Minerd, the Guggenheim operator, warned BTC to return to $ 10,000, stating that there was no “reason” to buy Bitcoin under the current conditions.
Other data suggests a longer rally in Bitcoin fundamentals, while December could bring renewed selling pressure, in line with historical precedents.
At home at home
According to Cointelegraph