PlanB, famous for the Stock-to-Flow (S2F) model, believes that Bitcoin is undervalued and could reach $500,000 this cycle. Although the cryptocurrency is far from the target of his model, the analyst notes that we are still in the first year of this period.
In a video published on Sunday (11), PlanB points out that Bitcoin had a “V” shaped recovery, being a sign that we are in a bull market.
Following, he compares Bitcoin with gold, noting that the cryptocurrency is twice as scarce as the metal, but that the market value of gold is 10 times greater.
“Bitcoin continues to be super undervalued, in my opinion”, commented PlanB.
For his accounts to balance, the cryptocurrency would need to appreciate 20 times, reaching $2 million per unit. However, the analyst is aiming for the target of $500,000 currently.
Bitcoin is in a bull cycle and could reach $500,000, says PlanB
Although there is no model that accurately predicts the price of Bitcoin, the Stock-to-Flow (S2F) has attracted the attention of investors in recent years. In total, PlanB accumulates 2.1 million followers on X, formerly Twitter.
This is because, despite its deviations, the model has a 16-year history where Bitcoin follows its average price.
Despite the model pointing out that today Bitcoin should be at $230,000, PlanB was optimistic about the future.
“Bitcoin had a “V” shaped recovery after all. Bitcoin jumped from 82 [thousand dollars] at the end of March to 94 [thousand dollars] at the end of April. And now, as we speak, it is at 104 [thousand dollars]”, began PlanB.
“This V-shaped recovery is a sign of a bull market.”
Regardless, the analyst agrees that this bull market is different from the past, being a “very strange and long” pattern currently.
“In my opinion, from now on, we will see new all-time highs. So it will be 100 [thousand dollars] and higher, followed by more monthly records”, continued PlanB, noting that these all-time highs are usually accompanied by others.
Next, PlanB talks about the Relative Strength Index (RSI) of Bitcoin, as well as the 200-day weekly moving average (WMA).
Another point mentioned is profit taking.
- Overall realized price (all holders): $45,000;
- 2-year realized price (medium term): $77,000;
- 5-month realized price (short term): $92,000.
“All realized prices are rising again — rising, rising — and the price of Bitcoin is above them all. This is also a sign of a bull market. Everyone is in profit. There is not much suffering in the market.”
Concluding his analysis, PlanB notes that Bitcoin only needs a strong four-month rally to reach $400,000 or more.
“This is not very far from the Stock-to-Flow model’s $500,000 average, which can be seen as a fundamentals-based target — scarcity fundamentals”, he concluded.
