Stock Flow Creator Predicts Continuation of Bitcoin Rally, Issues Price Target of $100,000

Stock Flow Creator forecasts continuation of the Bitcoin rally and publishes a target price of USD 100,000 August 2, 2020 August 2, 2020 Kelly Cromley http: // 1AZFjzw2 # Nwf63pYaMWq # xIY

The popular developer of the stock-to-flow model (S2F), PlanB, predicts an enormous rally in Bitcoin (BTC) with a price of USD 100,000 in the coming months, as crypto has already broken out of the narrow price band and is trading Annual highs.

The bullish view agrees with the dynamic shift from altcoins to bitcoin (BTC).

He explained:

"I can't make a map for you now (at sea), but the S2F model is perfect on the line."

Bitcoin in particular gained 17% last week as it breached the important multi-year (three) trend line. In fact, the number of UN cryptos during intraday trading exceeded USD 11,700. It looks like traders are expecting BTC to test higher resistance levels in the short term.

Interestingly, altcoins have been dropping in the past three days when Bitcoin started the rally. Ether (ETH), native crypto of the Ethereum blockchain, initially recovered along with Bitcoin, but has been declining over the past two days due to selling pressure.

In the short term, as profit booking continues on altcoins, some investors believe that BTC will outperform altcoins. Kelvin Koh, co-founder of the Asian venture capital firm Spartan Group, made the following forecast:

“If BTC breaks the resistance at $ 11.4,000, we will rise above $ 12,000 in no time. Will take the wind out of the alts for a short time. "

The Bitcoin price rally follows the usual price increase at the end of a bullish Altcoin season. In previous cycles, the king of crypto recovered after altcoins appreciated the BTC for a while.

The pattern can be explained by the assumption that investors will look for a safe asset after overheating the altcoin market and will trigger a bitcoin rally.

Lately, the FOMO factor (fear of missing out) has triggered a rally in crypto tokens related to DeFi (decentralized finance) projects. In the early days of DeFi token noise, compound (COMP) tokens experienced a major upward trend. Later, smaller tokens such as Yearn Finance (YFI), Aave (LEND) and Synthetix Network (SNX) started to collect.

When tokens, which represent small businesses, saw a 5 to 10-fold price increase, investors finally started to make profits. The sharp reversal of the DeFi tokens coincided with a BTC rally as Bitcoin gained momentum.

Data provided by Skew indicate that short contracts worth tens of millions of dollars continue to be watered down. This signals that a significant number of investors are speculating for the short-term decline in a BTC.

Cantering Clark, a crypto trader, explained the reason for the upward move, although the short positions look attractive. He explained:

“Looking at trades from R: R's point of view is good, but understanding the context is superior. After such a significant contextual change, you can be assured that your shorts are less likely to be resolved successfully. Bets should be on strength and always come up. "

Some speculators may find the current price level attractive to open a short position as BTC rose sharply last week and is now approaching a high resistance level.

Even if market sentiment is extremely optimistic, a 17% rally in a week is pretty extraordinary, even for a volatile asset like Bitcoin.

With crypto trading in an extremely tight range, a little short cover is enough to trigger a big price hike if the general sentiment remains optimistic.

Short positions worth over $ 23 million were liquidated in the past 12 hours when Bitcoin pierced the $ 11,700 level. Therefore, consolidation at these levels could trigger further short coverage and lead to a price jump.

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