Bitcoin price hits stock-to-flow rebound level not seen since 2017 all-time high
June 10, 2021. Summarized by summa-bot.
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Bitcoin price could be due for a strong rebound after hitting stock-to-flow divergence lows.
Bitcoin (BTC) spending over three weeks in the $30,000 range is proving a crucial test for one of its best-known price models.
As noted by Philip Swift, co-founder of trading suite Decentrader on June 11, Bitcoin is issuing a major challenge to the stock-to-flow price forecasting tool.
Highlighting spot price divergence from the stock-to-flow average, Swift explained that such instances have in fact occurred before.
Each time, Bitcoin bounced off a given price point relative to the stock-to-flow average to eventually hit new all-time highs.
Bitcoin price rebounded hard from such divergence previously. "
Previously, PlanB suggested that this year's Bitcoin bull cycle is more reminiscent of 2013 than 2017 thanks to the veracity of May's price dip.
PlanB still believes that $100,000 per Bitcoin will appear this year, while stock-to-flow calls for either a $100,000 or $288,000 average price between now and 2024.