Bitcoin BTC Still in Early Bull run Market

Bitcoin BTC Still in Early Bull run Market

Since the end of June 2019, the Bitcoin price hasn’t been doing too hot. After peaking out at $14,000, the cryptocurrency has tanked dramatically, first to $10,000, then $9,000, and then $7,700 most recently over a three-month period. "Bitcoin BTC Still in Early Bull run Market"

Bitcoin BTC Still in Early Bull run Market

According to multiple analyses, yes.

Prior to the recent Bitcoin dump, Willy Woo of Adaptive Capital noted that a number of on-chain metrics readings indicate that Bitcoin is closing up the opening act of the bull run, and awaiting the middle of the bull run to commence. He looked to a number of BTC price indicators, including the Realized Price and the VWAP Ratio, drawing clear comparisons between the opening acts of previous bull run markets and the recent price action.

That’s not all. Bitcoin BTC Economics recently found that its BEAM (Bitcoin Economics Adaptive Multiple) indicators are currently reading a 0.06, which they claim is a sign that BTC is in the early bull run.

And lastly, a fractal dimension technical analysis from pseudonymous Bitcoin analyst PlanB has found that BTC has just entered the start of an “orange/red phase”, which indicates bullish price action, despite the recent drawdown in price.

With it seemingly being established that Bitcoin price is in the midst of the early stages of its latest bull run cycle, it is important to look ahead and find at which area the cryptocurrency will top out.

According to a BTC price model from PlanB prediction, Bitcoin Bull run takes into account the stock-to-flow ratio (SF) of Bitcoin, somewhere between $50,000 and $100,000 is likely where BTC will find a top in the coming years.

The institutional quantitative price analyst’s model says that there is an exponential correlation between the market capitalization of certain hard commodities, namely gold and silver, and their SF ratio, which is essentially another way to quantify inflation.

Right now, Bitcoin’s SF ratio is around 25, with the price model predicting that BTC’s fair valuation is around $8,300. However, when the block reward reduction activates for Bitcoin next year, its SF ratio will surge to 50, with PlanB’s model implying a fair market capitalization of at least $1 trillion. This equates to around $50,000 per coin.

Of course, Price of  Bitcoin BTC has historically extended far above its fair value as dictated by its SF ratio, so $50,000 stands as a conservative estimate should PlanB’s analysis remain of relevance.

Post a Comment