Is PlanB's Stock-to-Flow Model About to Break? Crypto Investors Reevaluate Bold Bitcoin Forecast

Popular Bitcoin analyst PlanB says the widely used Bitcoin price prediction model is at a critical support level. The stock-to-flow (S2F) model, traditionally used to monitor the performance of commodities such as precious metals, compares the price of an asset to its current supply. Plan B has gained a large following thanks to the accuracy of S2F and S2FX, a variant of S2F that also takes into account the performance of gold and silver to make a price prediction for Bitcoin. The pseudonymous analyst tells his 536,400 followers that Bitcoin has just emerged from the lower band of the S2F model. The stock-to-flow model predicts Bitcoin to reach $100,000 and S2FX's reasons for Bitcoin to reach $288,000. 2nd jump in the lower band of the S2F model. Will S2F break? Or will this be an excellent buy signal? I actually know of several hedge funds that trade this BTC-S2F "co-integration" (although we can't officially use the co-integration test because the S2F rate is not arbitrary). — PlanB (@100trillionUSD) June 1, 2021 In a Twitter poll, PlanB told his followers that the charts meet Bitcoin's S2F hypothesis or if the charts give big buy signals. The survey shows that 17.6% of respondents believe S2F will break, 53.3% think it's a buy signal, and 29% of respondents only want to see the results of the survey. PlanB says that while the S2F model is close to "breaking in", the S2FX model is solid and Bitcoin is still in a bull market despite BTC's price drop over the past month. “Could close $37,341…-35%…We knew Bitcoin was not going to rise in a straight line, and a few -35% drops are possible (and indeed probable) in a bull market. It's starting to look like 2013. The S2FX model is intact.” The popular trader has previously stated that he has not personally focused on short-term price action and has great confidence in the long-term value of the stock.

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