Stock-to-Flow showing BTC is exactly where it should be right now...

in GEMSlast month (edited)

Another month in the books and another dot on the Stock-to-Flow chart...

As we turn the page on the first half of 2020, we also turned the page with another dot on the much heralded stock-to-flow bitcoin chart.

This time the dot would be red in color, which is significant if you have followed the stock to flow chart for any length of time.

The red dot is what you often see at the start of the bull market rallies.

In this case, RED = GOOD

It's the color that first appears after halving events.

Check it out:

image.png

(Source: https://twitter.com/100trillionUSD/status/1278243435816857602)

Interestingly enough, bitcoin is still tracking right along with where the stock to flow model says the price should be.

In fact, it's almost literally on the line.

Say what you want about the stock to flow model and whether you believe it will continue to be right or not going forward, but thus far it's hard to argue with the results.

Thus far it has predicted bitcoin's price moves with over 90% accuracy.

And there isn't anything showing up anywhere that should lead us to believe that is going to change any time soon...

image.png

(Source: https://twitter.com/ChartsBtc/status/1278341822415138816)

So, while the price action hasn't been exciting as of late, the stock to flow model says nothing is out of the ordinary thus far.

In fact, things are chugging right along exactly was the model would have expected.

The model will really but put to the test from here though...

It's showing a price of $100k by the end of 2021 and a price of around $280k by the end of 2024...

If both of those projections turn out to be true I think everyone readying this blog post will be extremely happy with the way things turned out.

Now we just need to make sure STEEM is dragged along for the ride! :)

Stay informed my friends.

-Doc

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“History doesn’t repeat itself but it often rhymes”

Doc how about steem being dragged along too :). Both coins getting dragged along but not seing big move yet. should'nt bitcoin be able to scale when the fomo start from Peter Schiff ? what your thought on BTC scaling. Will there be post halving dump, still to come ?

I think BTC will work best as digital gold. It also is what will allow it to continue to avoid the ire of regulators. If bitcoin were to become widely used as a currency it will face a lot of pushback from governments. Not saying it couldn't succeed in that role, but it would be rocky. If it instead replaces gold as a hedge against inflation and a safe haven store of value in portfolios, it will exist quit nicely and has runway up to about 30x the current levels if it just works as a store of value.

And yes I think there still could be a post halving dump. I am positioned as if it is going to dip still. However, I have half my position already in just in case it doesn't dip. Either way I am covered.

A good strategy. Requires emotions in check though