Bitcoin’s closing price for November below $ 60,000 meant that PlanB’s floor pattern, which has been particularly accurate so far, has finally been broken.
At the same time, though, the analyst confirmed that the more popular stock-to-flow model was still valid as BTC is on track towards $100,000.
PlanB floor model fails
PlanB is one of the most popular cryptocurrency analysts, best known for the stock-to-flow Bitcoin model, which it released in early 2019. However, it also released another model, which he called it a “worst case scenario”. ”, In July of this year.
Also known as the floor model, it’s based on technical aspects, such as the 200-day moving average, and saw BTC closing August at $47,000, September at $43,000, and October at $63,000.
The first two months have been perfect. BTC closed in October at $ 61,000, which was still very close to the model’s expected price, and PlanB said it was “good enough” for it.
However, November’s closing actual closing price of way below $60,000 was quite different from what the model envisioned – $98,000. As such, the analyst admitted that this was the model’s first miss after nailing the previous few months.
S2F on track
As mentioned above, the floor model works separately from the stock-flow model, which views stock as the size of existing reserves (or stocks) and flow as the annual supply of new bitcoin to the market.
It’s actually even more bullish as the original version sees bitcoin tapping $100,000 by the end of the year. The upgraded stock-to-flow cross-asset model, which introduced different phases of bitcoin’s development, predicted a price tag of $288,000 until 2024.
Although bitcoin is still struggling below $ 60,000 at the time of writing, PlanB believe that the original S2F was not broken as the asset is about to hit $ 100,000. If BTC is to indeed enter six-figure price territory, it is expected to increase its USD value by over 66% over the next 30 days.
