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Bitcoin HODLers are feeling the pinch after last week’s fall, but there is hope. If the Stock-to- Flow (S2F) prediction model is anything to go by, BTC could add another $3,000 from spot rates and trade above $10,000 by end of December 2019. This is the opinion of one Bitcoin supporter and adherent of the S2F prediction model.


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Analysts’ Calls

Evidently, BTC price has heavily fluctuated this past few months. In mid-June, prices soared to $13,800 before tumbling to $6,000 in a series of lower lows. Although a part of the trading community is still cautious to declare bull a bullish future, fearing that last year’s chills are yet to be shook and prices may fall to $2,800, fundamental and technical factors hint of a bottoming market and bulls strengthening.

The S2F tracks the scarcity of an asset with a hard cap. In Bitcoin and cryptocurrencies, the model will correlate the coin’s circulating supply and price action. Gold has the highest SF ratio compared to other precious metals. But according to FlibFlib, a cryptocurrency analyst, the low Bitcoin’s SF ratio means there is more room for substantial upside which traders should take advantage of.

Taking to Twitter, he said:



“Bitcoin’s Stock to flow model. Currently below s/f by 15-20%. It’s not a race but it if you believe in the narrative, it’s time to pay attention.”

FlibFlib’s observation syncs with Bayern LB’s bullish report that Bitcoin’s SF ratio will rise after next year’s halving. With the rise, Bitcoin’s market cap will be projected to hit $1 trillion because of scarcity. This will place BTC’s value at $90,000 a pop, meaning there is room for further growth going forward.

BTC Undervalued?

Bitcoin BTC Daily Chart

Technically, there is a W-formation, an inverted head and shoulder pattern at around spot levels. At the third leg, in which BTC finds itself in, there is room for growth if last week’s losses are reversed. Aside from this, there is a three-bar bullish reversal pattern off last week’s lows propelled by a spike in trading volumes.

The reversal following the under-valuation of the asset during last week’s slide was an opportunity for the market to re-adjust and strike equilibrium. This translated to a repricing and a close higher.

Because bulls are yet to reverse last week’s decline, risk averse traders should refrain from jumping in and buying the unconfirmed pull back. If prices close higher and above the $8,000 mark, then a double-bar bullish reversal pattern would print in the weekly chart, paving the way for buyers reliant on technical analysis for entries.


Bitcoin (BTC) Can Easily Close Above $10,000 By End Year

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Bitcoin (BTC) Can Easily Close Above $10,000 By End Year


Bitcoin HODLers are feeling the pinch after last week’s fall, but there is hope. If the Stock-to- Flow (S2F) prediction model is anything to go by, BTC could add another $3,000 from spot rates and trade above $10,000 by end of December 2019.


Dalmas Ngetich

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

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Dalmas Ngetich , 2019-11-28 13:08:24 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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