The creator of the stock-to-flow model, a popular cryptocurrency analyst under the pseudonym PlanB, believes that the current decline in bitcoin is quite normal and expected, and only confirms the “bullish” trend.
Analyst stressedthat one should not expect constant growth in comparison with the previous month throughout the entire bull cycle. Sometimes rollbacks should also happen:
Nothing goes up in a straight line. #bitcoin has gone up 6 months in a row, until this month. This looks like the mid-way dip that we also saw in 2013 and 2017. pic.twitter.com/uaCn9GCHGI
— PlanB (@100trillionUSD) April 23, 2021
“Nothing grows without pullbacks. Bitcoin has already been growing for 6 months in a row. This is similar to the mid-cycle correction we saw in 2013 and 2017. ”
At the same time, the analyst noted that he even “calmed down to some extent” – the market was too overheated, and now a small phase of “cooling” awaits him. In addition, now the rate of the first cryptocurrency turned out to be lower than the expectations of the S2F model, which means it may well continue to grow.
“For a while I thought it was some kind of super cycle, but now everything is back in the framework of the model. Everything works like a clock. For two years now, the bitcoin rate has been following exactly the predictions of my model, ”says PlanB.
In November last year, the analyst said that by the end of 2021, Bitcoin may well reach $ 100,000. For this, Bitcoin only needs to double its capitalization and, given that it has grown five times in just 6 months, this is quite achievable.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
