The inventor of the stock-to-flow model, a popular crypto specialist under the alias PlanB, thinks that the current decrease in BTC is quite normal and anticipated, and only validates the “bullish” trend.
The expert highlighted that one should not expect perpetual growth in parallel with the previous month during the entire bull cycle. Occasionally rollbacks should also occur:
“Nothing grows with no pullbacks. Bitcoin has by now been expanding for 6 months in a row. This is like the mid-cycle adjustment we observed in 2013 and 2017.”
Meanwhile, the analyst said that he even “calmed down to some degree” – the market was too overheated, and now a short phase of “cooling” is in place. Furthermore, now the rate of the first cryptocurrency is lower than the forecasts of the S2F model, which indicates it may well go on growing.
“For a time, I thought it was some form of supercycle, but now the whole thing is back in the model. Currently, everything works like a clock. For more than two years now, the BTC price rate has charted my model’s forecasts precisely,” says PlanB.
In November 2020, the analyst stated that by the end of the current year, Bitcoin may easily reach $100,000. To achieve this, BTC only needs to double its market cap and, given that it has grown five times in a little more than 6 months, this is quite attainable.
The remarks given by PlanB are not the only factors suggesting the bullish trend is still at hand. We remind you that the outflow of digital coins from the crypto exchanges is also a strong indicator for that.
