Bitcoin bull market ‘2nd leg has started,’ says BTC price model creator

Bitcoin (BTC) marking a brand new excessive of $67,000 final week has opened the opportunity of hitting $100,000 by the top of this 12 months.

PlanB, creator of the favored Bitcoin Stock-to-Flow (S2F) model, known as Bitcoin’s worth retracement from the $60,000-level the “2nd leg” of what appeared like a long-term bull market.

In doing so, the pseudonymous analyst cited S2F, which anticipates Bitcoin to continue its leg higher and attain $100,000 to $135,000 by the top of the 12 months.

The value projection mannequin insists that Bitcoin’s worth will carry on rising till not less than $288,000 per token due to the “halving,” an occasion that takes place each 4 years and reduces BTC’s issuance fee by half towards its 21 million provide cap. 

Bitcoin after the 2012, 2016 and 2020 halving. Supply: PlanB

Notably, Bitcoin has undergone three halvings to this point: in 2012, 2016 and 2020.

Every occasion decreased the cryptocurrency’s new provide fee by 50%, which was adopted by notable will increase in BTC worth. As an example, the primary two halvings prompted BTC price to rise by over 10,000% and a couple of,960%, respectively.

The third halving brought about the worth to leap from $8,787 to as excessive as $66,999, a 667.50% enhance. Up to now, S2F has been largely correct in predicting Bitcoin’s worth trajectory, as proven within the chart under, leaving bulls with increased hopes that Bitcoin’s post-halving rally could have its worth cross the $100,000 mark.

Bitcoin S2F as of Oct. 26. Supply: PlanB

PlanB famous earlier this year that Bitcoin will attain $98,000 by November and $135,000 by December, including that the one factor that will cease the cryptocurrency from hitting a six-digit worth is “a black swan occasion” that the market has not seen within the final decade.

An 80% crash later

Regardless of the excessive worth projections, Bitcoin can nonetheless see huge corrections sooner or later. PlanB thinks the subsequent crash might wipe not less than 80% off Bitcoin’s market capitalization, based mostly on the identical S2F mannequin.

Associated: COVID-19 vaccine will spark Bitcoin ‘crash’ — Rich Dad Poor Dad author

“Everyone hopes for the supercycle or the ‘hyperbitcoinization’ to start out proper now and that we should not have a giant crash after subsequent all-time highs,” the analyst told the Unchained podcast, including.

“As a lot as I’d hope that have been true, that we don’t see that crash anymore, I believe we’ll. […] I believe we’ll be managed by greed proper now and worry afterward and see one other minus 80% after we high out at a pair hundred thousand {dollars}.”

BTC/USD every day worth chart. Supply: TradingView

However not everybody thinks the subsequent correction shall be as dramatic because the earlier ones. Dan Morehead, CEO of Pantera Capital, stated in mid-October that the next Bitcoin price drop will be less than 80%, citing a constant drop in promoting sentiment after every halving cycle.

Final week, Bitcoin established a brand new report excessive at round $67,000 following a 53% rally in October to this point. However the brand new highs prompted profit-taking amongst merchants, resulting in retests of the $60,000 support level.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you must conduct your personal analysis when making a choice.