Bitcoin appears to be performing just as expected, said PlanB, the famous crypto analyst. PlanB tweeted about how Bitcoin was adding ‘red dots’ to the chart and working like clockwork.
PlanB has created the Stock-to-Flow model (S2F) and released its third edition on 27th April 2020. He predicted the price of Bitcoin for this year and the consecutive next years, saying Bitcoin would touch $288K. He mentioned that the trends might start this very year.
In his latest tweet, PlanB posted a graph of the BTC S2F Cross Asset Model, where red dots denoted the Bitcoin. A white step-ladder-looking line went from a little over $0.10 (in 2010) to over $100,000 post-2021. This line indicated the S2F Bitcoin price calculation.
We can see that the red dots in 2020 are pretty much aligned with the line indicator. PlanB said that Bitcoin’s price range is more or less matching the corresponding predictions he made through the S2F model.
May’s Halving Brought the Trend
PlanB added the fourth red dot for September (mentioning the actual price on the day he tweeted). The dots started in June after the famous halving took place in the middle of May this year.
If we compare the trends of the previous two halvings, we have only a few months before the Bitcoin price shoots up even higher. PlanB said that the latest halving cycle will give similar results as the previous one (that happened four years ago) and the price would touch or even cross $288K.
In the Crypto Market
Bitcoin has once again tried to break the resistance at $12K on 1st Sep but failed and stood at $11,950 before the trading started.
PlanB feels that the coming months will be exciting as the price is all set to touch new heights. If the price of Bitcoin continues to follow the same trend, we are going to witness interesting price changes where it’ll steadily climb higher and higher.
While Bitcoin is having the best time ever, the dollar seems to be on the opposite end of the spectrum.
The Federal Reserve announced that inflation is likely to go over 2%, at least for the time being. In simple words, the value of the dollar is falling, and investors will probably be turning to other assets such as Bitcoin and gold.
Tyler Winklevoss, the co-founder and CEO of Gemini crypto exchange, tweeted that the ‘US dollar is becoming shitcoin faster than ever thought’. He added that Bitcoin is the only safe haven.
Warren Buffet’s investments in gold and Japanese assets ($6 billion) also seem to be adding to the USD woes.
Europe is No Better
Europe isn’t doing any better. The European Central Bank (ECB) stated that inflation in the eurozone fell into negative territory. This has happened for the first time in four years (last was in 2016).
Is Bitcoin going to be the only surviving currency in the coming days? Only time will tell.
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