Embrace the Brief Opportunity of Bitcoin Below $40k, Urges S2F Model Creator Plan B
Recently, Plan B, the brains behind the stock-to-flow (S2F) price model, encouraged crypto enthusiasts to cherish and take opportunity of the transient phase of Bitcoin’s value below $40K. This perspective aligns with that of onchain analyst Willy Woo, who makes a bold prediction that Bitcoin might consistently remain over the $30K mark.
Crypto Market Analysts Predict Eminent Rise in Bitcoin’s Value
At the start of this week, Markus Thielen, a prominent research leader at Matrixport, asserted that the upswing in Bitcoin’s value, which is presently hovering just under the $38K mark, is an inevitable development. This expected rise in value, according to the predictions, is a certainty especially after the recent unmistakable harmony established between Binance and the U.S. Department of Justice. Thielen and his team estimated an 80% chance for Bitcoin to exceed the $40K mark before the end of December.
On the same day, Plan B, who is renowned for his development of the S2F model, mirrored Thielen’s predictions, envisioning the Bitcoin’s growth to the $40K benchmark. When questioned about possible fall in prices, Plan B expressed his disapproval of the “Picking Up Pennies In Front Of A Steamroller” attitude, reinforcing his expectation for a significant leap in the value of Bitcoin:
My anticipation aligns with a minimum of 3x growth from current levels, pegging Bitcoin’s average price somewhere between $100K-$1M in the 2024-2028 halving cycle.
Plan B’s viewpoint garnered support from the Bitcoin advocate Dan Held, who agreed that the duration of Bitcoin falling below the $40K threshold would likely be short-lived. Adding more weight to this perspective, another Bitcoin supporter expressed that prices under $40K are perceived as a “gift”. Plan B also dispersed a “realized price” chart representing Bitcoin’s historical price trends, indicating a cyclical pattern of bounce back every time it touches the five-month ‘realized price’ threshold.
A careful examination of this chart reinforced the belief that presently, the price graph is hovering slightly above the five-month realized price. The past trends indicate such a position often precedes massive price hikes. These insights are in sync with Willy Woo’s recent analysis, where he presented a price density map for Bitcoin, strongly suggesting that Bitcoin’s value might not fall below $30K again, given the current market trends.
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Frequently asked Questions
1. What is the significance of the Sub-$40K Bitcoin price predicted by the S2F creator Plan B?
The significance of the Sub-$40K Bitcoin price predicted by the S2F (Stock-to-Flow) creator Plan B is that it presents an opportunity for investors to acquire Bitcoin at a relatively affordable price. Plan B’s model suggests that Bitcoin’s price will continue to increase over time, making the current sub-$40K level a potentially attractive entry point.
2. How accurate has Plan B’s S2F model been in predicting Bitcoin’s price movements?
Plan B’s S2F model has been relatively accurate in predicting Bitcoin’s price movements in the past. It takes into account the scarcity of Bitcoin (stock) relative to its annual production (flow) and has shown a strong correlation between these factors and the asset’s price. However, it’s important to note that no prediction model can guarantee future accuracy.
3. Why does Plan B believe that the Sub-$40K Bitcoin price won’t last long?
Plan B believes that the Sub-$40K Bitcoin price won’t last long due to the increasing demand and limited supply of the cryptocurrency. According to the S2F model, as Bitcoin becomes more scarce over time, its price is expected to rise. Therefore, the current price level may be viewed as a temporary dip before the asset’s value potentially surges.
4. How long is the anticipated duration for Bitcoin to remain below $40K according to Plan B?
Plan B’s S2F model does not provide a specific timeframe for how long Bitcoin will remain below $40K. The model focuses on the long-term price trajectory rather than short-term fluctuations. Therefore, the duration for Bitcoin to surge above $40K cannot be precisely determined based on the S2F model alone.
5. Should investors consider buying Bitcoin at the Sub-$40K price level?
Investors may consider buying Bitcoin at the Sub-$40K price level, considering the potential long-term growth predicted by the S2F model. However, it is vital to conduct thorough research, consider personal financial goals, and consult with a financial advisor before making any investment decisions.
6. What are the risks associated with investing in Bitcoin?
Investing in Bitcoin carries certain risks, including price volatility, regulatory changes, cybersecurity threats, and market manipulation. Bitcoin’s price has historically experienced significant fluctuations, which can result in substantial gains or losses. Additionally, the regulatory environment surrounding cryptocurrencies is evolving and may impact their value or legality in the future.
7. Can Bitcoin’s price ever go below the Sub-$40K level again?
While it is theoretically possible for Bitcoin’s price to drop below the Sub-$40K level again, the S2F model suggests that as Bitcoin becomes scarcer, its price is expected to rise over time. Therefore, according to Plan B’s model, it is less likely for Bitcoin to remain below $40K for an extended period in the future.