Sunday, 14 February 2021

S2F model and technical indicators show that Bitcoin will reach $100,000 in a few months

Since 2021, Bitcoin, the cryptocurrency with the highest market value, has repeatedly set record highs. According to comparison data, the current price of Bitcoin has risen above 47,000 USD, which is only one step away from the 50,000 USD mark.

Compared to 2020, the price of Bitcoin has increased by more than 100%, but crypto analysts and investors generally believe that this bull market has just begun.

The flow inventory model (S2F) of the popular analyst PlanB on Twitter shows that the price of Bitcoin is likely to soar in a few months. He said on Twitter that the price of Bitcoin may surge to the 6-digit price range between April and September this year. He pointed out that since the Bitcoin halving in May 2020, the price of Bitcoin has been advancing in a “stable and inevitable” manner.

He also predicted that according to Bitcoin's bull market cycle, Bitcoin may soar to $288,000 by the end of this year. This means that Bitcoin needs to achieve a 500% increase compared to now, and its market value will far exceed the current global market value of Apple's 5.3 trillion US dollars.

Another bullish market for Bitcoin is the Marketcap to Thermocap technical indicator, which has accurately predicted the rise in the price of Bitcoin in the past few bull markets.

According to the data from the encryption analysis website Glassnode, the indicator is currently rising rapidly. The last time the indicator reached its current level was in the second half of 2017. At that time, the price of Bitcoin was $8,500. One month later, the price of Bitcoin rose again. That’s 135%.

Crypto analyst Rafael Schultze-Kraft said on Twitter that although the current market environment is very different from 2017, if calculated based on the 135% increase at the time, Bitcoin is likely to rise to 11 in a month. Ten thousand U.S. dollars.

The direct factor driving Bitcoin's price increase is still the relationship between supply and demand. Especially this week, the automaker Tesla disclosed that it had purchased $1.5 billion in bitcoin and it is also preparing to accept bitcoin as payment. This has triggered discussions among big companies about whether to invest in Bitcoin or accept Bitcoin.

According to "Betwee", companies such as Twitter, Uber, and JPMorgan Chase have all stated that they have considered possible scenarios and will take action when needed.

In addition, crypto whales in the market are also acting. After the news that Tesla invested 1.5 billion US dollars in bitcoin, the total amount of BTC held by addresses with more than 100 bitcoins showed a particularly strong upward trend. , An increase of 20490 BTC.

This makes the total Bitcoin holdings of these giant whale addresses reach a record high, exceeding 11.6 million. This number precisely reflects the recent increase in institutional participants.

Crypto analyst Florian Grummes wrote in Seeking Alpha that although the current technical indicators seem to be overbought, some hesitant investors have not yet joined, and some governments, institutions, hedge funds, and banks are participating. Many investors are waiting for a callback, but prices continue to rise.

He said that although the current price of Bitcoin is already high, if investors look back at the present in five years, they may not believe that they did not start in time.

jinse.com

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