Confident analyst Plan B said Bitcoin (BTC) could still average $288,000 over the next three years, after the BTC/USD pair plunged 7% on June 12.
In a tweet on Saturday, the creator of the popular Bitcoin pricing models expressed doubts that the Bitcoin rally could continue.
PlanB: Business as usual for BTC
Aside from the chart describing Bitcoin as “going for gold,” PlanB has been usually quiet about recent developments in Bitcoin, despite not being able to break past $40,000.
According to a Cointelegraph report, both traders and outside sources have raised their concerns over the past week, and are focusing on a possible deeper correction in the bitcoin price.
PlanB replied, “$288,000 is still in the game.”
“I would really be surprised if Bitcoin didn’t impact the black S2FX lineup at this point. Regardless of the current volatility, the yellow, green, and blue dots will be (much) higher than the red and orange dots.”
BTC/USD price chart 1 month vs month to halve events. Source: PlanB / Twitter
Such a “surprise” would be a serious test of the model, which so far has represented Bitcoin’s growth with unique precision.
The $288,000 price tag is the average after S2FX iterations of stock-to-flow cross assets, while the previous release required a more modest $100,000 average. Both are based on the current halving cycle, which is the four-year period between support halves that ends in April 2024.
Cointelegraph previously noted that spot price deviations from S2F measurements have reached levels where bounces and new all-time highs are usually seen.
In additional comments, PlanB notes that 2021 already matches the behavior in the other full-time years — 2013 and 2017, refuting speculation that Bitcoin faces significant challenges.
“Deviations aren’t much different from 2013 (S2F ~ 10) or 2017 (S2F ~ 25), it’s just normal sluggishness after the halving,” he told Twitter users.
Bitcoin has a bullish impact up its sleeve
Mike McGlone, chief trading strategist at Bloomberg Intelligence, contributed to a sense of optimism about the strength of the two halves.
On the subject: Bitcoin is up 6% as Bloomberg Analyst prefers $40K to $20K next.
On Saturday, he described the decline in the Bitcoin supply as a “bullish trump card” for the largest cryptocurrency, which could naturally raise the price.
He concluded, “Bitcoin $100,000 has a bullish trump card up its sleeve: supply deflation – this year a decrease in Bitcoin supply follows, raising the possibility of a price increase if previous patterns continue.”
Overview of calculating the price of bitcoin depending on the change in supply. Source: Mike McGlone / Twitter
His optimism stems from the fact that Taproot, billed as the most important update to the Bitcoin network in four years, has been barred from contract activation.
By November, Taproot is introducing a number of improvements that will make it cheaper to use some important features like multi-signature transactions, among other things.