The recognised investor PlanB believes that Bitcoin is behaving like clockwork and that it is on track to the Market Cycle Model (MCM). The analyst shared on X a detailed chart of how Bitcoin is behaving and how the largest cryptocurrency is in a “pre-bull” market stage.
PlanB Believes Bitcoin is on Track and Behaving like Clockwork
PlanB, one of the most recognised investors in the cryptocurrency market, has shared a Bitcoin chart in which he shows that Bitcoin is currently in a pre-bull market stage. This comes at a moment in which Bitcoin surpassed $37,000 per coin after several months trading below $30,000.
This analyst became popular in the past for the Stock-to-Flow (S2F) model, which is used to predict Bitcoin price. The S2F model focuses on scarcity and the ratio of the existing stockpiles to yearly production. As per PlanB, this model has been validated after predicting the bull market after the 2020 halving event.
About it, PlanB wrote:
“Some think S2F (scarcity based model that predicted $55k BTC in 2019, when BTC was <$4k) is invalidated because BTC did not reach $100k, but others (like me) think S2F is perfectly valid because it predicted the bull market (red) after 2020 halving.”
It is worth pointing out that Bitcoin will experience a new halving event in 2020 that will reduce the new issuance of Bitcoin from 6.25 BTC per block (900 BTC a day) to 3.125 BTC per block (450 a day). This is a fundamental characteristic that sets Bitcoin apart from traditional fiat currencies: BTC has a defined and limited supply.
Following PlanB analysis, it is possible to expect the chart to turn red, which would indicate a bull market. While PlanB does not give specific price predictions, the chart would show a price for Bitcoin close to or above $100,000. Another thing to consider is the fact that Bitcoin reached its all-time high in November 2021 when the virtual currency hit $69,000 per coin.
According to the Bitcoin Halving Countdown, the halving event is expected to take place on May 8, 2024. Nevertheless, the date can change depending on how fast blocks will be added to the Bitcoin blockchain by miners.