Historical Data Suggests Imminent Breakout In Bitcoin (BTC) Price

 Historical Data Suggests Imminent Breakout In Bitcoin (BTC) Price

PlanB, the creator of the stock-to-flow (S2F) model, predicts a breakout in the Bitcoin (BTC) price based on the historical price trends and the original 2019 $55k model. BTC has soared nearly 6% rising above the crucial $30,000 level in the last 6 hours.

PlanB believes the original S2F $55k model is right and the predicted 14X rise to $55k is worth more than the 2X prediction error of $100k. Moreover, both models point to $500k after the 2024 halving.

PlanB Predicts Bullish Momentum for Bitcoin (BTC)

The Bitcoin price seems to breakout above the $28k-$30k range as it enters the buying area. According to the S2F $55k model, the Bitcoin price has corrected massively and could rise strongly. Moreover, as reported previously, the BTC price seems to have possibly bottomed out.

 Original 2019 $55K Bitcoin S2F Model
Original 2019 $55K Bitcoin S2F Model. Source: PlanB

“Even if the original $55K model was right and the later $100K update wrong, the difference is “only” 2X. Remember that S2F model was created in March 2019, when bitcoin was below $4K. IMO the correctly predicted 14X rise (55/4) is worth more than the 2X prediction error (100/55).”

Furthermore, the BTC price at its current levels seems similar to falls in 2015 and 2018/19. These falls followed a rally in the Bitcoin (BTC) price. The Bitcoin price has fallen below the moving average and realized Bitcoin price lines. Thus, a rebound above the $30,000 shows an upcoming bullish momentum.

Bitcoin Realized Price Moving Average
Bitcoin Realized Price Moving Average. Source: PlanB

The Bitcoin (BTC) price is currently moving with huge volume as the price jumps to a high of $30,893 in the last few hours. If the trend continues, the BTC price will break above multiple resistance levels. In fact, a move above $32,000 will bring a strong rally.

Other Analysts Also Predict Bullish Rally

Several analysts believe the Bitcoin will move higher at current levels. Ki Young Ju, CEO and analyst at CryptoQuant, Bitcoin whales are accumulating more aggressively now as compared to previous bear markets. Moreover, institutions had bought the dip and didn’t sell their bitcoin holdings.

Alex Kuptsikevich, a senior market analyst at FxPro, believes Bitcoin bulls will regain if the price moves above $30,600, a horizontal resistance line since mid-May. The rising interests among traders and whales are fuelling hopes of a turnaround.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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