Will Bitcoin achieve the goal of analyst Plan B?
THE Bitcoinat the time of writing, it was trading above $ 38,000 on the charts, with evidence of institutional purchases, even at the mentioned price level. Bitcoin’s rise in the press came after the cryptocurrency surpassed the $ 37,000 mark after nearly three weeks. While there has been volatility and network momentum in the Bitcoin price rally since October 2020, crypto has been largely limited in much of January.
When the price fell below $ 35,000 for the first time after reaching a new ATH above $ 40,000, there were fears that Bitcoin’s price would not meet the goals of the S2F and S2Fx model based on the analyst’s Plan B model. Interestingly, after the third halving, Bitcoin’s price seemed similar to what it was between the 2012 and 2016 range on the Bitcoin price chart.
It should be noted here that the S2F goal is $ 100k and the S2Fx goal is $ 288k, based on the graphs. The targets are considered an average price and the price is expected to oscillate around the target price. Plan B expects the 2021 bull run to continue and follow a trajectory like that of 2017. If that happens, the target would be $ 100k.
However, the current bull run may actually be more similar to 2013. This is why Plan B has now upgraded the target from $ 100k to $ 288k, based on the S2Fx model.
Analyst Plan B’s goal of $ 288,000 comes at a time when the number of Bitcoin whales is increasing and growing every week, regardless of the price of Bitcoin. Bitcoin addresses with more than 1000 BTC have grown exponentially, based on data from Glassnode. In the last week of December 2020, the number of Bitcoins on the exchanges was increasing and there were more HODLers and miners recording unrealized profits.
However, based on Glassnode data, the volume of Bitcoin on exchanges is also falling again. Since this is limiting supply, it can keep Bitcoin’s price on track with the predictions of the S2F model. While there are metrics that point to an impending price correction, a prolonged price hike also seems likely.
Although there is a lot of expectation about whether the result will be different this time around, no one really knows what will happen, because the cycle is different. While a price hike is still at stake, there has been almost no price discovery beyond $ 40,000.
In fact, Max Keizer, co-founder of Heisenberg Capital, also set the Bitcoin price target at $ 220,000, in line with the Plan B analyst’s S2Fx model. Therefore, Plan B models are not the only ones to set a goal on $ 200,000 and above, so institutional demand and “digital gold” narratives may only be increasing the likelihood of reaching the 2021 target.