Stock-to-Flow Model already ahead of projections!

in GEMS15 days ago

Year old price prediction from Stock to Flow Model already proven accurate

If you have been in crypto for any length of time, you have likely heard about the PlanB Bitcoin Stock to Flow Model.

It's a model that's often used to value gold and other commodities, and so far has also worked extremely well in valuing (and predicting) bitcoin prices.

However, there have been many critical of the model pointing to the fact that in a relatively short period of time some of the model's predictions for bitcoin prices get rather... out there.

That being said, the model continues to be right time and time again in the near term.

None other than the Wall Street Journal pointed out today how the model was proven right again with the recent surge above $55k.

Back in 2019 PlanB and his bitcoin stock to flow model pointed to bitcoin hitting $55k by May of 2021:

image.png

(Source: https://twitter.com/100trillionUSD/status/1363135330161991680/photo/1)

Not only did bitcoin hit $55k, but it did so in February, which was several months ahead of schedule!

And again, this was pointed out by none other than the Wall Street Journal... nice!

Who would have thought a few years ago the Wall Street Journal would be mentioning PlanB and his bitcoin stock to flow model in a serious fashion...

Not many.

Trends Trends and more Trends

Sometimes it's easy to get sucked in the day to day and even hour by hour price moves in bitcoin and crypto.

When this happens sometimes it's easy to lose track of the bigger picture.

For example, when I get stuck watching the hourly chart over and over and see the price starting to look like it's ready to correct, it can be tempting to take some profits, but when you zoom out and look at the bigger picture it becomes all the more clear where we are heading...

How's this for a trend for you:

image.png

(Source: https://twitter.com/ChartsBtc/status/1363173727542800384/photo/1)

Pretty easy to see the 4 year cycles here.

We have 3 green candles with the 3rd candle being the big fat one, followed by one red one.

That points to this year being a massive year for bitcoin, way higher than it is currently based on the past yearly candle patterns.

Getting back to PlanB and his Stock to Flow model, it points to a price north of $100k by the end of this year and it points to an even higher price by the next halving.

image.png

(Source: https://twitter.com/100trillionUSD/status/1356606408997879808/photo/1)

The way things are going, it looks like we are going to way overshoot that number just like we did back in late 2017.

It's crazy how these patterns just keep repeating over and over again.

$200k looks like a very real possibility during this cycle.

Stay informed my friends.

-Doc

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This is great news!

I would also just like to point out that the prediction is that BTC would hit 55k in May 2020, not 2021, so remember to still be careful, just like you should in any investment!

Have a great day @jrcornel!