NewsletterBitcoin This Week: Bitcoin Plummets Below USD 30000 Mid-Week But Medium And Long Term Targets Seem Intact
Bitcoin (BTC), which was pretty much range-bound last week, saw a sudden bear attack as we moved towards the weekend. This sudden dip took bitcoin plummeting to USD 28,850 from a steady USD 35,600 in less than two days. While the bulls bought the near USD 29000 drop and the Bitcoin is back above USD 30000, the range of Bitcoin seems to have shifted lower, closer to USD 32000 from what was previously appeared closer to USD 35000.
If we view this price move from all All-Time Highs of $41,950 to a dip at USD 28850, Bitcoin has plummeted 31 %. If we look at the past bull runs of BTC, a shake-up of 30-35 % is not something unheard of as the flagship coins have a change of hands with every price rise.
If we look at the technical parameters put forward by TradingView.com, but Oscillators and Moving Averages suggest a Buy and a Strong Buy, respectively providing an overall buy indication
For Oscillators, the Commodity Chanel Index and Momentum Indicators suggest a Sell
The Hull Moving Average on the Moving Averages front indicates the sell.
Among the price discussions this week for BTC, Anthony Pompliano took onto Twitter putting forward the Stock-to-Flow mode (S2F) model of price prediction, which still suggests that Bitcoin is still en route to its target of USD 100000 by the end of 2021. According to Pompliano, who is the co-founder of Morgan Creek Digital Assets, this model has been deadly accurate till now and, in probability, is predicting the right future price of Bitcoin (BTC)
Stock to flow model is deadly accurate so far.
This is what a programmatic monetary policy looks like.
Predictable and transparent.
No one can change the rules unilaterally because they think they're smarter than the free market. pic.twitter.com/Kps1AZ7lpD
— Pomp ???? (@APompliano) January 21, 2021
For readers, The Stock-to-Flow model is a predictive tool for Bitcoin price created by PlanB. This model relies on Bitcoin’s scarcity and its upcoming halvings. According to the author, the S2F chart predicts where the Bitcoin price is headed in the future which if stays accurate we may soon see Bitcoin swing up again.
What do you think would be the price of BTC in the coming week?
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