• Creator of the Bitcoin stock-to-flow model believes Bitcoin price could rally to the wide $100,000 to $1 million range. 
  • Plan B argues that Bitcoin price is ready for 5x growth based on the stock-to-flow model projections. 
  • Analysts identify a descending broadening wedge in Bitcoin price chart and reveal bullish outlook on BTC.

Creator of Bitcoin’s stock-to-flow (S2F) model believes BTC price has the potential to grow 5x despite the bearish outlook. The analyst backs his prediction through the S2F model that predicts the future price of Bitcoin based on its circulating supply relative to the number of BTC mined every year. 

Also read: Bitcoin price: BTC struggles to stay afloat amid reverse currency war

Plan B’s stock-to-flow model predicts Bitcoin price has potential for 5x

The idea of the Bitcoin stock-to-flow model was introduced by creator Plan B, a pseudonymous investor with over two decades of experience in quantitative finance. The S2F model gained popularity in March 2019 after its publication. S2F is considered a widely accepted method for predicting Bitcoin price based on its scarcity. The underlying idea is scarcity drives Bitcoin’s price higher. Therefore, quantifying scarcity can help predict the Bitcoin price. 

Plan B’s stock-to-flow model predicts the future price of Bitcoin based on its circulating supply relative to the amount of coins mined each year. The number of coins mined decreases by 50% each four years through a mechanism known as “halving.” This plays a key role in Bitcoin’s rally, according to the S2F model. 

In a recent tweet, Plan B included new data to improve the 2019 Bitcoin S2F model and represented it through a white dotted line. Plan B has set a bullish target of the $100,000 to $1 million range for Bitcoin and asks users to read it as "BTC will increase at least 5x".

Bitcoin stock-to-flow model (S2F)

Bitcoin stock-to-flow model (S2F)

Analysts defend bullish outlook on Bitcoin, set $68,000 target

Despite bearish market conditions and predictions, Crypto Prof, a pseudonymous analyst and trader, has set a $68,000 target for Bitcoin price through the Elliott Wave Theory. The analyst believes Bitcoin price has a good chance of returning to Wave B ($68,000) in the next few months as it did in the last two cycles. 

 Crypto Prof also predicts that the Bitcoin bottom is an indicator of the upcoming rally in the asset. 

Bitcoin-USD price chart

Bitcoin-USD price chart

Descending Broadening Wedge (DBW) is a bullish chart pattern, considered a reversal pattern, formed by two diverging bullish lines. A Descending Broadening Wedge is confirmed if it has good oscillation between two upward lines. 

Crypto Prof recently identified a DBW in the Bitcoin price chart.

Bitcoin-USD price chart 2013-2022

Bitcoin-USD price chart 2013-2022

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP