Amber

Bitcoin (BTC) Price at $34K, 58% below Stock-To-Flow Target, Investors Still Accumulating

UTC by Steve Muchoki · 3 min read
Bitcoin (BTC) Price at $34K, 58% below Stock-To-Flow Target, Investors Still Accumulating
Photo: Depositphotos

Bitcoin price has plummeted by almost 50% from its all-time mid-April high of about $65,000. This has, however, proved far from being a stumbling block for investors with a long-term bullish Bitcoin outlook.

Bitcoin (BTC) price at writing time was around  $34,444, down 58.4% from the stock-to-flow model target of $82,703. The crypto giant also continues to show what some analysts think are “few signs of a genuine bullish recovery”.

Created by Twitter user ‘PlanB’, the stock-to-flow model is one of the most common Bitcoin forecasting tools. Its use has been pretty much accurate, with all anomalies in trends taken into account to maintain validity. However, Bitcoin’s price and expected stock-to-flow values are now far apart, flagging a historical moment in Bitcoin’s decade-old existence.

Being below Stock-To-Flow Target, Is Bitcoin Price a Buying Opportunity?

According to Chief investment officer at Moskovski Capital, Lex Moskovski, “Negative Stock-To-Flow deflection is the highest it’s ever been in the whole Bitcoin history.” He also went to say that “This is a great buying opportunity if you’re a believer in this model.”

Notably, Bitcoin price has plummeted by almost 50% from its all-time mid-April high of about $65,000. This has, however, proved far from being a stumbling block for investors with a long-term bullish Bitcoin outlook. Statistics from Glassnode data intelligence show increased BTC accumulation or what is known as “macro HODLing behavior”, despite price falls.

Moreover, Glassnode’s Liveliness Ratio has decreased which means BTC could enter a bullish phase, owing to increased HODLing behavior. Nevertheless, this Bitcoin price trend statement is not always static. As seen between November 2020 and April 2021, the Liveliness Ratio increased as prices remained bullish. Such an event suggests a lack of a bearish phase despite lower HODLing behavior. The Nov-April happening was, therefore, likely due to a balance between selling and buying pressures.

Additionally, analyst PlanB has reiterated a bullish view of Bitcoin for this year. He stated a minimum $47,000 mark by August, and a $135,000 target by December as the “worst-case scenario”.

Nevertheless, 41% of his Twitter followers have argued against the $100K mark for BTC this year. A Guggenheim executive has also warned of a $10,000 BTC price, in addition to claiming the lack of reasons to purchase BTC at the present price. Furthermore, a forex strategist from the LMAX investment group, stated that Bitcoin price could revisit its old record of $20,000. He attributed this to the recent markets meltdown due to the increased spread of the Covid-19 Delta variant.

PlanB has never ruled out his model’s invalidation. This could nonetheless become the reality should 2021’s most bearish scenarios be realized.

As Bitcoin miners set up once more in different areas due to Chinese regulatory crackdown, Bitcoin’s price recovery may be extended. On the other hand, selling pressure could mount again in December, as per historical observations. Long-term investors, however, maintain a bullish outcome above the strongly-held $30,000 psychological support level.

Bitcoin News, Cryptocurrency news, News
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

Related Articles
EarnBet