Bitcoin (BTC) gives crypto investors reason to cheer with the upswing back to 47,000 US dollars, although according to a popular forecast model this is only the “worst case”.
Accordingly, PlanB, the inventor of the relevant Stock-To-Flow (S2F) calculation model, pointed out on August 13th that BTC / USD still has a lot of room for improvement at 47,000 US dollars.
Bitcoin meets the forecast
After the crash in May, serious doubts arose about the reliability of the model, which has actually always predicted the price development of the market-leading cryptocurrency very precisely.
Even PlanB was unsure in between when Bitcoin went back to $ 29,000.
Nonetheless, he insisted that the crypto market leader would return to its former strength as soon as the aftermath of the Chinese government’s increased crackdown on the domestic mining industry subsided.
For August, the expert therefore forecast a deal at 47,000 US dollars, which will be followed by a steady increase over the next few months, ending in the “worst case” at 135,000 US dollars.
Although this unbroken optimism was subjected to fierce criticism a few weeks ago, this thesis is now apparently coming true, because Bitcoin can jump back over the strong resistance at 47,000 US dollars as early as mid-August.
✅ Aug> $ 47K https://t.co/tj6SSwSzKR
– PlanB (@ 100trillionUSD) August 13, 2021
Key figures are positive
The model also believes that an interim downturn to US $ 40,000 is possible, but the bears are slowly losing the upper hand, as more and more metrics and indicators suggest that things will go up significantly again in the next few weeks.
“The Bitcoin price AND the moving average of the last 200 weeks AND the realized market capitalization are ALL on the up”, as PlanB says.
The “Realized Cap” or realized market capitalization considers the entirety of the currency units at the respective price at which they were last moved, whereby a more precise representation of the actual market value of Bitcoin is achieved. The figure reached a new record high on Friday and is now more than $ 378 billion.
“Translation: The capital invested in the Bitcoin network has reached a new record”, as statistician Willy Woo in this context explained. He adds:
“There is currently more capital in the network at an exchange rate of $ 47,000 than at the record high of $ 64,000 in April.”
So the signs for Bitcoin are good, which means that stock-to-flow is back on track.