Bitcoin Perfectly Aligning With The Stock-to-Flow Model to $100k
- A new challenger approaching the “Monster” resistance in the range of $9,800-$10,400
- Stock-to-flow model points Bitcoin on-track to a big jump
Bitcoin is enjoying a ride, climbing to $9,150 level. This move up has BTC up over 22% to date in 2020 and the volume on top ten exchanges with real volume also surging to nearly $1.2 billion.
In tandem with bitcoin, altcoins also went green with elation. Cardano is today’s winner with over 16% gains in the past 24 hours followed by Ethereum Classic (8.43%), Bitcoin SV (7.57%), EOS (6.97%), and Litecoin (6.09%).
Extra Bullish if BTC closes above $9,250
On this BTC’s move, investor and trader Josh Rager says the green candle on the monthly chart is looking good that seems to indicate, it might “want to overtake the Nov. open.”
However, he said it would be extra bullish if Bitcoin closes January above $9,250. This close would make the price more likely to push up over $10,000 and re-test the point of control (POC) of the June to Sept. 2019.
However, going upwards, the new challenger approaches in the range of $9,800-$10,400 which is the “Monster” resistance.
A new challenger approaches! pic.twitter.com/xNBB6LliUk
— Credible Crypto (@CredibleCrypto) January 28, 2020
Meanwhile trader Credible Crypto “9.5k resistance prepping itself to face the BTC bulls.” He further points out that any pullback by BTC price is a buy the dip opportunity. As for altcoins, he said while “lots are lagging while BTC takes the spotlight, but they will have their turn soon.”
Bitcoin on-track to a big jump
Meanwhile, Bitcoin is perfectly aligning with the historically accurate stock-to-flow model which has been charting the digital asset’s price over the years as it grew from pennies to an all-time high.
This model treats Bitcoin as a comparable asset to precious commodities like gold and silver. Gold is a “store of value” because it retains its value over time due to its relative scarcity. BTC is also a scarce asset, having a limited supply of 21 million that makes it the first-ever scarce digital object to exist.
The stock-to-value ratio is used to evaluate the current stock of a commodity against the flow of new production. Analyst PlanB states,
“Bitcoin is the only asset with a “Sharpe ratio” > 1 (return>risk)! Classic asset (stocks, bonds, gold) risk & return basically flat. Even FAANG (Facebook, Apple, Amazon, Netflix, Google) .. not even close to btc.”
I ❤️ cointegration pic.twitter.com/WVvCqMFr5R
— PlanB (@100trillionUSD) January 27, 2020
The chart by PlanB shows, Bitcoin is very much on track to its $100,000 target, with the stock-to-flow model’s trajectory pointing out that soon we would be taking a big jump.