Experts predict bitcoin growth to $ 85,000 based on the Stock-to-Flow model

The popular Stock-to-Flow (S2F) model and on-chain indicators indicate the completion of the correction and the rise in the price of bitcoin to $ 85,000 by the end of the year. DecenTrader analysts shared their observations.

Experts analyzed the dynamics of a number of on-chain indicators and found similarities with the events of December 2018 and March 2020, when the preconditions were formed for a trend change to an upward one.

The price of the first cryptocurrency still remains in the corridor between the two-hundred-day moving average and the $ 32,000 level. According to analysts, there is still uncertainty in the market after the May collapse due to fears of increased regulatory pressure from the US authorities.

The Active Addresses Sentiment Indicator (indicator of sentiment of active addresses) indicated excessive sales and a possible reversal, experts noted. The metric determines whether prices are overbought / oversold in relation to user activity.

Analysts have provided a graph where you can see the return of the 28-day moving average of the change in the price of digital gold in the corridor of the same indicator, built on the basis of the dynamics of active bitcoin addresses. Previously, this situation served as a signal of growth in the coming weeks.

Dynamics of 28-day moving changes in bitcoin addresses and the price of digital gold. Data: DecenTrader.

Experts saw similar prerequisites for price growth in the SOPR indicator (profitability ratio of the spent output). In the past few days, sales of coins have prevailed at a profit, rather than at a loss, which was observed during May.

Dynamics of the SOPR indicator. Data: DecenTrader.

DecenTrader expressed confidence that within a few months the price will return to the line of its expected trajectory dictated by the S2F model. In other words, by the end of the year, the value of digital gold will reach a new record of $ 85,000.

 

“This time buyers may not be satisfied with the previous rally. Nothing has changed in principle. The model works, just a negative news background has developed around bitcoin, ”the analysts explained.

 

Their chart shows the divergence between the current and predicted price of the first cryptocurrency according to S2F. Orange arrows mark four situations in history when this discrepancy reached current values.

Model S2F. Data: DecenTrader.

 

“$ 288,000 remains a realistic target. I would be very surprised if the price does not return to the trend line, ”wrote the creator of the PlanB model.

 

Bitcoin is up 12% today after tweets from Elon Musk about the condition for Tesla’s resumption of sales for the first cryptocurrency.

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