PlanB, a well-known analyst and creator of the S2F model, believes that despite the 25% drop in the price of Bitcoin, the digital currency market will continue to rise in 2021.
to the the report Cryptopotito, Planebi, believes that the recent decline in the price of Bitcoin does not mean the end of the upward trend of this digital currency this year. Bitcoin has fallen sharply in recent days, losing $ 16,000 in one week; But according to Planby, this is part of Bitcoin’s uptrend, and the price of this digital currency could rise to $ 288,000.
If we go back a bit, we notice that the upward trend of bitcoin started in October (October 99). For the next six months, the price of bitcoin rose steadily, from $ 14,000 in October to about $ 60,000 in March.
Until last week, April also seemed to be a bullish month for Bitcoin. It was the same month that the shares of Coin Base were listed on the Nasdaq, following which the Bitcoin price hit a record $ 65,000.
But last Sunday (April 29), the price of this digital currency suddenly dropped to $ 9,500. Friday was not a good day for Bitcoin either. On this day (May 3), the price of Bitcoin fell below $ 50,000 and since then it has been trying to get out of this range.
However, the plank, known to many as the popular S2F model, is not pessimistic. He believes that no trend is always in the same direction and that all of this could be the beginning of a resurgence of bitcoin.
To prove his claim, Plunby plots the price behavior of Bitcoin after Hawing in 2012, 2016 and 2020 in the form of a chart.
As you can see in this chart, the price of Bitcoin has experienced similar corrections in its two previous bullish markets. One of these two bullish markets occurred in 2013 (after Howing I) and the other in 2016 (after Howing II). With that said, it seems we are in a similar time now.
Assuming that Bitcoin is now in the middle of its uptrend, Planby has used the accumulation-to-flow model to predict its price at the end of the uptrend. In this model, the accumulation of the same existing bitcoin reserves and the flow is the annual supply of bitcoins; But the plan to predict the price of bitcoin is not limited to these two factors and has taken into account the evolution of bitcoin since 2009. Since its inception in 2009, Bitcoin has been in the process of proving itself, then being accepted as a means of payment, then becoming a store of value and so-called “digital gold”, and finally, as an asset class. Was recognized as independent. Taking all of these factors into account, Planby predicts that the price of Bitcoin will reach $ 288,000 at the end of the current uptrend.
Despite the current price of Bitcoin (about $ 49,000), the realization of this forecast means that its price should increase up to 6 times. Of course, this prediction may seem optimistic and unrealistic at the moment, but do not forget that the price of bitcoin has increased 6 times over the past few months. As mentioned earlier, this digital currency traded at $ 10,000 in October; But in April, it reached $ 60,000.