Bitcoin (BTC) may be making long traders miserable but one bullish analyst says that he is "relieved" that it has shed 22% in a week.

In his latest social media update, quant analyst PlanB noted that the price dip to under $48,000 has sent BTC/USD below its target laid out by his stock-to-flow price model.

"Astonishing" stock-to-flow gets it right again

As such, Bitcoin is no longer "front-running" stock-to-flow, which is traditionally a highly accurate price forecasting tool. After trading above its required level, PlanB suggested that he had become concerned progress was becoming inorganic.

"I am sort of relieved BTC price is now under s2f model value again," he wrote in a conversation with "The Bitcoin Standard" author Saifedean Ammous, who called its predictions "astonishing."

"For a moment I thought that people were front running the model and that the supercycle had started. Now we are back to normal .. like clockwork."

Bitcoin

BTC/USD spot price vs. stock-to-flow trajectory. Source: PlanB/ Twitter

Both the terms "clockwork" and "supercycle" will be familiar to long-term hodlers, these often describing Bitcoin's relationship to stock-to-flow and the qualities of the current bull run, respectively.

As Cointelegraph reported, the two iterations of the model, stock-to-flow, and stock-to-flow (S2F) cross-asset (S2FX), variously call for an average BTC/USD price of $100,000 or $288,000 between now and 2024.

Previously, PlanB said he believed Bitcoin would not stop at $100,000, which it should hit this year

"Bitcoiners are often too bullish in the bull market, and too bearish in the bear market!" podcast host Stephan Livera, responded to Ammous.

"I don't think we supercycle this time either."

Sentiment shakeout continues

Meanwhile, various factors were being pitched as the impetus for the latest round of price losses, these including CME futures now trading below spot price as bearishness enters, as well as a negative Coinbase premium.

The latter suggests bullishness when it is positive, but the reverse — when Coinbase spot price is lower than that of fellow exchange Binance — is also true.

The flip to negative coincided with a series of a major sell orders on Coinbase, each one causing a brief downward spike in its order book spot price.

Chart

Coinbase order book with selling and price dips. Source: Josh Olszewicz/ Twitter

In a sign that irrational sentiment is still to leave the market, the Crypto Fear & Greed Index also remained in "greed" territory despite dropping to monthly lows, though still suggesting that a sentiment reset had yet to kick in.

During its initial drop from all-time highs near $65,000, Bitcoin saw mass liquidations of long positions.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Chainlink Price Prediction: LINK prepares for a spike in profit-taking

Chainlink price has enjoyed an impressive bull rally over the past week that has seen it rise to new all-time highs. Now, a particular technical index shows that investors may be inclined to realized profits. 

More Chainlink News

Chiliz locks in new sport collaborations while CHZ price remains bounded

Chiliz price ranges and volume profile complement the bottoming pattern. Still, the extended right shoulder defeats the symmetry of the pattern, thereby lowering the probability of a successful breakout and reaching the measured move target.

More Chiliz News

Three reasons why the ‘other Ethereum’ has pumped 130% in the last week

Ethereum Classic (ETC) continues to maintain its parabolic price action advance that began in late March. Data from crypto market aggregator Coingecko shows ETC is up almost 50% in the last 24-hour trading period as of the time of writing.

More Ethereum News

XLM Price Prediction: Stellar eyes 10% rally to set up another swing high

 

XLM price shows extreme resilience as it tagged the demand zone extending from $0.474 to $0.503. A quick bounce from this level could set the stage for a subsequent swing high near $0.588.

 

More Stellar News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP