PlanB, the inventor of S2F, argued that Bitcoin’s bull run could continue to a new peak, despite dropping by 25% in a week and changing the overall sentiment.
The inventor of the popular S2F model suggested that the last major price drop in which Bitcoin lost about $ 16,000 a week was nothing more than a stepping stone to new highs. He stated that BTC could be in the middle of the rise, which could lead it to stock-flow targets of up to $ 288,000.
On a more macro scale, it is possible to conclude that Bitcoin has been in a bull run since early October. A solid confirmation of this comes from the six consecutive months that the primary cryptocurrency closed in green from $ 14,000 in October to around $ 60,000 in March.
April is also historically a bullish month for BTC. The landscape looked like this until at least a week ago. Taking advantage of the excitement of the Coinbase listing on the Nasdaq, Bitcoin has skyrocketed to an all-time high of $ 65,000.
However, it dropped last Sunday and a drop of $ 9,500 brought BTC to a 3-week low. Friday didn’t go that well either, and Bitcoin found itself on the receiving end of another drop – this time even dropping below $ 50,000, which it still struggles with.
“Nothing goes in a straight line,” said PlanB, a Twitter user best known in the community for creating the stock flow model. Moreover, he believes that this major failure could actually get in the way of another important pillar.
The cryptocurrency had experienced similar steep price corrections in the previous two major bull cycles – in 2013 (after the halving) and in 2017 (after the second). Both emerged during the run at about the same time as the current one and classified this as a “middle ground drop”.