The recent collapse in the crypto market witnessed various currencies drop in double digits, BTC, the largest crypto by market cap, experienced a decline of about 30%, followed by ETH, which fell 40%. Even Dogecoin saw a decline of around 45%. Many traders asked the same question: Is it time to sell? Many would have already realized this notion as the selling pressure on the various exchanges has increased significantly.
However, many Bitcoin advocates did not allow panic selling to take over HODL strategies. Analyst PlanB, known for his contribution to the S2F model, predicts that the price of BTC will exceed the $ 100,000 mark and even go further despite the recent drop.
PlanB expressed optimism about BTC in a meeting with “The Wolf” Scott Melker. PlanB expressed its views on the Stock-to-flow model, which supports its own price predictions:
“Much more accurate than I could have imagined (…) Actually the model is very simple and very accurate. Its only entry is famine. It’s a very high product, like a luxury item. A good that everyone wants to have. Why is that? Because it is scarce. When the price goes up, the demand increases, and it’s different from what we learned in this school. All other factors that clearly affect the price; news, central bank policies etc. These are things that have an effect on the price but are not in the model. This is a mistake of the model, but even as it stands, it explains most of the price. The S2F model shows that Bitcoin has reached $ 100,000, and the model shows that Bitcoin surpasses $ 288,000 before the next bear market hits. ”
Even before the video, the analyst posted on Twitter to talk about the same issue:
“To be clear: I don’t think $ 60,000 is a peak, or even far from that, because I don’t normally see the types of transactions that take place after an ATH (red dots). Actually, we are several months away from the bear market (blue dots) in my opinion. And yes, this on-chain view fits S2F (X). ”
Just to be clear: I do not think $60K was the top, far from it, because I do not see the kind of transactions that normally happen after an ATH (red dots). In fact, I think we are just a couple of months out of the bear market (blue dots). And yes, this on-chain view fits S2F(X). pic.twitter.com/omLh23MsrX
— PlanB (@100trillionUSD) May 18, 2021
Also, Plan B said from his followers, “I know that your model explains the Bitcoin price quite well in the last 2 cycles, but why do we expect these to happen all the time? (…) ”He answered the question as follows:
“Fear and greed will not go away, inflation will not take away the fear.”
The analyst also repeated his views on the Bitcoin bear market:
“A bear market is possible, perhaps as low as $ 100,000 to $ 200,000, perhaps below where it can see 80-85% off-trend movement like previous cycles;
He also touched on the price targets after the next BTC halving in 2024:
“It will be interesting after halving, after 2025. The S2F model estimates the BTC price to be $ 1 million compared to the S2F model, and the S2FX model says $ 5 million.