Bitcoin price prediction model of $135k by next month ‘still in play’

- Advertisement -


A price prediction model that puts bitcoin on track to reach six digits before the start of 2022 is “still in development,” according to its creator.

- Advertisement -

Pseudo-Anonymous Dutch Analyst PlanB Forecast first published in June When the BTC price was below $34,000, it has remained within a few percent of each monthly target since then.

Follow our live coverage of the crypto market

advertisement

The cryptocurrency reached $47,000 by the end of August and dropped to $43,000 at the end of September – both prices predicted by PlanB.

Bitcoin’s October closing of $61,318 was slightly below the model’s forecast of $63,000, but there is renewed hope for the November target of $98,000 after BTC hit new highs above $68,000 last week. .

- Advertisement -

Bitcoin’s latest price rally means it is up more than 300 percent from last year, but a further 50 percent increase in price is needed if it is to meet PlanB’s prediction for November.

see more

PlanB’s popularity soared along with the price of bitcoin in 2021, gaining more than a million followers on Twitter after its stock-to-flow (S2F) model was proven.amazingly accurate,

The S2F model divides the supply (stock) of bitcoin with its output (flow) to predict its market movements over the long term. The cryptocurrency’s inherent scarcity – only 21 million coins will ever exist – coupled with its dwindling supply would theoretically see its value increase over time.

His latest predicted breakthrough comes from his “worst-case scenario” for bitcoin, which puts it on course to hit $135,000 in December.

The simplicity of PlanB’s S2F model means that it is likely to be derailed by “black swan events”, such as a major economy imposing a bitcoin ban, or major geopolitical news affecting traditional financial markets.

They told Granthshala The price of bitcoin could have been supercharged by equally favorable news last month, such as ETF approval or another country following the lead of El Salvador to adopt it as legal tender.

Other analysts caution investors against relying on the S2F model to predict short-term price movements.

“The model has been accurate to date, but I caution against following a model for such a volatile asset class,” said Mustafa Al-Mashita at digital asset firm GDA Capital.

“Bitcoin can unify the global economy through a single asset class unlike any other. It can outperform and outperform the S2F model at any time, [but] We also have Kryptonite Black Swan events that could cripple bitcoin in the short term.”

,

Credit: www.independent.co.uk /

- Advertisement -
Mail Us For  DMCA / Credit  Notice

Recent Articles

Stay on top - Get the daily news in your inbox

Related Stories