PlanB: Bitcoin Price Below S2F Model Value Is A ‘Rare’ Opportunity For BTC To $10,000 By EOY
- China, low volumes, miner capitulation, and traditional assets becoming more attractive behind the fall in price
- Bitcoin could close 2019 at above $10k — PlanB
- Bitcoin needs to recover $7,500 in the next two days or we going down
Before breaking the record losing streak of 2014, that has BTC crashing to $6,515 level, Bitcoin went back above $7,000 and is still maintaining around that level.
Since last week, Bitcoin price has lost 15% of its value, sinking to the lowest level in six months on concerns of a crackdown on crypto trading by China.
However, while clarifying China’s latest clampdown on crypto operations, former Indus Capitaland Goldman Sachs partner, Kelvin K, a partner at The Spartan group, a Blockchain advisory & investment firm stated that President Xi Jinping promoting blockchain technology sparked a speculative fervor in the market. This had many of the Chinese altcoins, Tron, Neo, Ontology, Bytom, and Vechain rising 40-150% in the immediate aftermath.
Within days of this, the Chinese government called for a clampdown on all crypto trading activity to protect retail investors from fraudulent schemes and enforce its capital controls as digital assets can circumvent existing restrictions.
Other explanations for this drop have been low volumes and traditional assets becoming more attractive according to eToro U.K. market analyst Adam Vettese.
Meanwhile, Vijay Ayyar of crypto exchange Luno said it has been miner capitulation that drove the decline as cost of Bitcoin production,
“could be indicated to be in the $6,000 range and hence we’ve seen the price dip to that range last week.”
However, this hasn’t been unique, the retracement from June 26th when BTC hit its 2019 high at $13,900 until today actually has been “largely in line” with the previous mid bull cycle retracements made by the flagship cryptocurrency, noted Mati Greenspan, founder of investment firm Quantum Economics.
At the time of writing, BTC/USD has been trading at $7,159, up over 3% in the past 24 hours, as per Coincodex while managing the daily trading volume of $542 million.
$10,000 Before 2019 Over?
Michael Novogratz of Galaxy Digital says Bitcoin needs to recover $7,500 in the next two days or we will be trading in the $6,000 and $7,400 range which won’t be “pleasant” for the digital asset.
“BTC still up 95% on the year to keep perspective, but man, I liked it better above 10k.”
However, this $10k might come before the year ends.
According to popular analyst PlanB, who is known for his stock-to-flow model to determine BTC value, Bitcoin could close 2019 at over $10,000. He further added that the opportunities like the current one where BTC price is below the S2F model are actually “rare.”
— PlanB (@100trillionUSD) November 25, 2019
According to this model, over time Bitcoin will become even more scarce than gold that puts BTC price at $100,000 before Christmas 2021.
However prominent analyst Willy Woo says, for that to happen, Bitcoin needs to close above $8,300 by the end of this month, that is, in just four more days.
We'd need to close above 8300 by the end of the month (4 more days), or we'll likely have a bearish December to test new lows. 2020 will be a good year, I almost want it to go lower to collect cheaper coins.
— Willy Woo (@woonomic) November 26, 2019
If BTC fails to end November above $8,300, Woo is expecting a bearish December that will test new lows. Having said that “2020 will be a good year,” he said, which has him “want it to go lower to collect cheaper coins.”