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PlanB: $ 7,800 Bitcoin price is "on track" when mining difficulty is up 6.8%

PlanB: $ 7,800 Bitcoin price

Bitcoin (BTC) did not “collapse” last weekend (in Vietnam time) and in fact it still works exactly as expected, the creator of the floating stock-to-flow (S2F) price model. statement.

In one tweet On March 8, PlanB analyst said that although the BTC / USD pair has dropped below $ 8,000, the downward pressure is in fact a non-event.

PlanB: BTC price “is on the right track”

Sharing the latest forecasts of the Bitcoin stock-to-flow model, he wrote:

“The S2bit #bitcoin chart is corrected for today's 'incident' … nothing happened, BTC is on the right track with S2F.”

Stock-to-flow is a measure of where Bitcoin's next destination will be based on existing supply compared to the amount of “new” Bitcoins in circulation. This model is proposing a BTC price of $ 100,000 at some point in 2021.

Before the halving of Bitcoin took place in May – an event widely believed to be a catalyst for prices, PlanB's model called for a significantly lower average price below $ 10,000.

Currently, the stock-to-flow average of 10 days and 1 year is about $ 7,600 – $ 200 lower than the current price of BTC.

Bitcoin stock-to-flow chart of March 8. Source: Twitter PlanB
Bitcoin stock-to-flow chart of March 8. Source: Twitter PlanB

As Toiyeubitcoin reported, stock-to-flow has proven to be extremely accurate in Bitcoin's price history. However, PlanB has faced a lot of criticism lately, from people who think the goal of $ 100,000 is too optimistic.

To defend his opinion, he argued that those who did not support it failed to prove that stock-to-flow was false and to create a valid replacement.

Mining difficulty is about to increase sharply

At the same time, PlanB emphasized that Bitcoin's mining difficulty is set to rise on Monday, regardless of price action.

The difficulty of mining is basically a demonstration of the motivation needed to validate transactions on the Bitcoin blockchain, a higher index implies more miners participating in BTC mining.

“There were no signs of weakening two months ago halving,” he added, and described the increase of about 7% to a record high as “very large”.

1-year mining difficulty chart of Bitcoin. Source: Blockchain
1-year mining difficulty chart of Bitcoin. Source: Blockchain

Bitcoin's Hash rate, a rough estimate of the computing power of mining tools to confirm transactions, reached an all-time high last week.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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