Despite dropping by about $1,000, is still way ahead of even some of the most optimistic price projections and detailed price forecast models. Here is a look at how Friday’s ‘flash crash’ hasn’t derailed in the long term.
Current bitcoin Price Still Leads $1 Million S2F Model
Tweeting on Saturday (May 18, 2019) analyst “planB” showed how even at $7,300, still leads the about $1,000 on the road to hitting $1 million per coin.
at $7300 .. $1000 above S2F model value 🚀
— planB (@100trillionUSD)
PlanB’s S2F model posits that scarcity and value have a direct relationship with scarcity being a measure of stock flow (SF). The analysis also takes into consideration important parameters like block reward halving which occurs every four years until all 21 million are mined.
According to the model, by the time of the next halving which is in May 2020, ’s SF should double from its current value of 25 to 50. This doubling would bring ’s SF closer to that of commodities like gold.
permabulls like Max Keiser say has the to reach a fraction of the gold market capitalization, which is somewhere in around $8 trillion. The S2F model predicts that by 2020, should have a market price of $55,000 based on an SF value of 50.
S2F hinges heavily on scarcity which for takes on another dimension given that a portion of the 21 million total supply isn’t even attainable since some are forever lost.
from BitInfoCharts shows that there are about 16.82 million held in dormant addresses. Between cumulated dust and lost private keys, there are about 10.5 million that haven’t moved in over a year.
Perfect Pullback?
Before the , there had been the talk of a in the price action to the mid-$6,000 level. These predictions hinged on massive profit taking above $7,000, creating another entry point for a new accumulation in preparation for a fresh upward swing.
In the short-term, there is an expectation that might slip further downwards perhaps to the 50-day or 200-day moving average support levels. This puts a possible downward slide between .
However, such a move would mean breaking the $6,400 support level which characterized for most of 2018. Only the fallout from the Cash civil war in November 2018 successfully took below that price level.
Do you think the flash crash adversely affected ’s parabolic advance? Let us know in the comments below.
Images via Twitter and , Shutterstock
Published at Sat, 18 May 2019 20:02:08 +0000
