Bitcoin investors are increasingly bullish on post-halving prices as price trigger and PlanB’s “Stock-to-flow” model predicts prices will rally.
Bitcoin is printing higher highs as its price continues to breakout pre-halving. The bitcoin-to-dollar pricing on Wednesday is edging closer to $8,000.
Crucially, BTC/USD’s 3.07 percent uptick on the day means the top crypto is now above the 20-week exponential moving average. Bitcoinist says this price curve saw the price of Bitcoin jump from about $4k to above $13k in 2019. That price surge sent the crypto to a 239 percent rally.
Traders also saw prices move to above $10k in January 2020 on the back of a 28 percent rally that also resulted from the coin top its 20-WMA. Bitcoin’s gains today could push the prices above the 50-WMA to test $8,500 and above that $9,000.
Bitcoin’s latest break above this indicator precedes the halving event that will cut mining rewards by half- from 12.5 BTC to 6.25 BTC. Traditionally, the event has been a bullish one for Bitcoin.
Bitcoin’s “stock-to-flow” value to double
Bitcoin’s price could also be set for a massive uptick post-halving if the “stock-to-flow” theory holds. The S2F is a concept that measures the current supply or availability of BTC vis a vis new supply. The stock-to-flow model takes into account the last two halvenings that saw BTC blast past its previous all-time-high prices. Advanced by PlanB, the model predicts that Bitcoin will see its price soar exponentially to hit over $280k by 2024.
The model has been applied in predicting price movements for gold and silver.
Bitcoin currently has a stock-to-flow value of 25, compared to gold’s 62 and silver’s 22. But with the halving cutting the rate at which new bitcoins enter the market, the crypto’s S2F value will rise twofold to 50. That is going to encourage hodling as BTC becomes even more scarce, helping its value to skyrocket in the next three to five years.
In the short term, halving FOMO could see bitcoin test $10,000 and $11,000. Bitcoin whales have significantly increased in number, the highest since 2016 before the last halving. According to analytics firm Glassnode, this accumulation is interesting and could push prices higher.
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