Bitcoin (BTC) has dropped 11% in a week, but the coin is actually working exactly as what a prominent cryptocurrency analyst predicted.
In one tweet On March 1, PlanB, the creator of the popular stock-to-flow Bitcoin prediction model, said that at around $ 8,500, the BTC / USD pair was on track.
PlanB: “Everything is fine” for BTC price
In February, he predicted that Bitcoin could lose support at the 200-day moving average (200-DMA), but it will eventually stay above $ 8,200.
As Toiyeubitcoin reported, the prediction finally came true last week. The 200-DMA has given traders hope to raise prices after it moved from resistance to support in February, but recent volatility has reversed the situation.
However, PlanB thinks there is nothing to worry about. Sharing data from his Bitcoin price index, he said the outlook had in fact improved to $ 8,600.
“Everything is going well and … the indicator has reversed to $ 8,600 (March closing),” he wrote in the comments.
Despite forecasting prices for a separate entity, the stock-to-flow model is currently calling an average of $ 8,650 for Bitcoin before the halving takes place in May 2020.
Later, the model said that profits would bring Bitcoin to a higher level than ever before. PlanB rebutted criticism of his model in recent weeks, seeming to agree that those who doubted the value of stock-to-flow were unable to prove it. .
The price of Bitcoin and stock-to-flow is “co-integrated,” he announced last week, and re-posted the long-term stock-to-flow trajectory.
Halving will not spark a “death spiral”.
Meanwhile, in a private tweet, PlanB added that he did not anticipate negative progress towards Bitcoin in terms of the strength of the network after halving.
He emphasized, during the halving events of 2012 and 2016, the mining difficulty of the Bitcoin network increased. This year, the hash rate – currently at an all-time high, will continue to grow.
“I don't know,” he answered when asked what kind of event could reverse Bitcoin's bullish fate in May.
"I don't think the hashrate reduction after halving is a possible scenario, because 1) after halving in 2012 and 2016, the hashrate increased – 2) miners who invested in hw were more efficient than S9, and replacing hw This old will continue next month. "
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According to CoinTelegraph
Translated by ToiYeuBitcoin