Bitcoin (BTC) at $47,000 is turning heads but is in fact only the “worst-case scenario” for one of its most popular analysts.
In a tweet on Aug. 13, PlanB, creator of the stock-to-flow family of Bitcoin price models, reiterated that $47,000 should be just the beginning for BTC/USD.
Bitcoin price no longer in its “worst case scenario”
Following the May miner rout from China and accompanying BTC price crash, long-established price models based on the stock-to-flow principle saw a major test of their reliability.
Even PlanB himself had moments of uncertainty as Bitcoin dipped to lows of $29,000.
At the time, however, he predicted that a return to strength as the dust settled on the mining reorganization would propel the market far higher.
August, or more specifically the August close, should be $47,000, he said. On a month-by-month basis, BTC/USD should then continue rising to hit an end-of-year “worst-case scenario” price of $135,000.
While facing stiff criticism, PlanB’s forecast came true this week as Bitcoin passed $47,000 after spending several days attempting to dislodge a giant resistance barrier at exactly that level.https://platform.twitter.com/embed/Tweet.html?creatorScreenName=cointelegraph&dnt=false&embedId=twitter-widget-0&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X2hvcml6b25fdHdlZXRfZW1iZWRfOTU1NSI6eyJidWNrZXQiOiJodGUiLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NwYWNlX2NhcmQiOnsiYnVja2V0Ijoib2ZmIiwidmVyc2lvbiI6bnVsbH19&frame=false&hideCard=false&hideThread=false&id=1426288285975031816&lang=en&origin=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fbtc-price-passes-47k-worst-case-scenario-as-bitcoin-realized-cap-hits-all-time-high&sessionId=81b69f8db809a671ac62bf5954148bce2b8f3c60&siteScreenName=cointelegraph&theme=light&widgetsVersion=1890d59c%3A1627936082797&width=550px
Realized cap joins hyperbullish Bitcoin metrics
In a potentially interesting twist, the coming weeks could even see a modest reversal closer to $40,000, according to the same prediction. So far, bears have had a tough time keeping the market down for long, analysts pointing to multiple factors, all favoring upside over a correction.
“Bitcoin price AND 200 week moving average AND realized cap .. ALL rising,” PlanB added.
Realized cap, a method of assessing Bitcoin’s market cap based on the price at which each coin last moved, broke all-time highs with Friday’s move higher. It now stands at over $378 billion.
“Translation: The capital stored in the Bitcoin network just broke an all-time-highs,” statistician Willy Woo responded on Twitter.
“The network has more money in it today at $47k than it did at $64k in April. Realised Cap estimates this by summing the price paid for every coin in BTC’s circulating supply.”