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Bull market signal lights up! PlanB: Bitcoin market price will enter the next phase

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Bull market signal lights up! PlanB: Bitcoin market price will enter the next phase

Famous Bitcoin analyst PlanB has released an update to his Stock-to-Flow valuation model. He stated that the red dot, representing a bullish signal, has emerged in the model, indicating that Bitcoin will see the next bull market before 2021, with prices potentially reaching as high as $100,000.

Red Dot Appears, Bull Market Approaches

PlanB is a well-known anonymous analyst in the market, who claims to be a member of an institutional team managing $100 billion in assets. His most notable achievement is the development of the Stock-to-Flow (S2F) valuation model for Bitcoin. At the end of April this year, PlanB further optimized the existing model and developed the Stock-to-Flow Cross-Asset model (S2FX). This new model not only applies to Bitcoin but can also accurately estimate the prices of gold and silver, hence it is referred to as a cross-asset model.

Yesterday, the analyst released an update on the Stock-to-Flow valuation model. Since Bitcoin went through its third halving last month, investors have been anticipating the update of this valuation model, as it signifies the start of the next price increase cycle for Bitcoin, indicating that Bitcoin is expected to reach $100,000 by 2021.

According to PlanB, the red dot representing the starting point of the next bullish cycle has appeared in the model:

"Red dot in the #bitcoin S2FX model, is this the start of another bull market? Red dots in 2012-2013 and 2016-2017 marked the start of a new phase for Bitcoin."

On the other hand, besides the appearance of the bull market signal in S2FX, the old version of S2F also shows a bullish red dot.

Bitcoin Market Enters Phase Five

In another tweet by PlanB, it shows the regression model based on S2F and indicates that the values for May and June have deviated from the cluster of the fourth phase. This suggests that the next phase of Bitcoin (Phase 5) is currently forming.

Compared to the beginning of the year, the price of Bitcoin has risen by about 30%, making it one of the best-performing assets of the year so far. However, in the past few months, the price of Bitcoin has been experiencing significant fluctuations and has struggled to hold above the $10,000 mark. Yet, this morning, the price of Bitcoin surged nearly 7% within an hour, breaking through the $10,000 barrier, significantly boosting investor confidence in the upcoming bull market.