It may seem unlikely that Bitcoin (BTC) will climb back to $10,000 next month, but it should not surprise anyone, according to the creator of one of the most accurate BTC price models.
In a tweet on 25 November, Twitter analyst PlanB, known for its Stock-to-Flow Bitcoin charts, said the BTC/USD pair could easily climb back into the five-digit range by 2020.
PlanB: BTC recovery to 10,000 US dollars “no surprise
“Call me crazy, but it wouldn’t be a surprise in my eyes if BTC ended the year 2019 at over $10,000… Such opportunities (#Bitcoin below S2F model value, 6 months before halving) are rare,” he wrote.
Such an increase would mean 40 percent growth for Bitcoin compared to the current level. In fact, this is already within reach. Last month, the second largest daily growth of the crypto currency was around 42 percent.
PlanB alluded to the current Bitcoin price, which is poor in terms of the stock-to-flow model. At $7,100, the BTC/USD pair is a full $1,200 below the tool’s estimate. As Cointelegraph reported, the tool predicts an average price of $8,300 until the block reward is halved in May 2020.
The statistician Willy Woo also reacted to the pessimistic mood so close to halving. Last week Woo looked at the “unique” quality of the market this year and explained that the previous halving was accompanied by a bullish price development.
Woo: 8,300 US dollars in November to overcome the bear market
Woo responded to PlanB’s comment, saying the time for an increase to $10,000 was almost up:
“We would have to close over $8,300 by the end of the month (4 days to go). Otherwise there will probably be a declining December and new lows will be tested.”
He added that 2020 would be “a good year” no matter what happens in the short term.
Venture capitalist Mike Novogratz was more uncertain, but also predicted that an immediate reversal would be necessary.
“The $BTC exchange rate must recover to $7,500 in the next two days. Otherwise we’ll be in the range of $6,000 to $7,400, which would be less than pleasant,” he commented on Twitter on Tuesday.
On Monday, there were small signs of a recovery in the markets. Bitcoin rose by around 11 percent from its daily low of 6,515 US dollars. As is often the case, a so-called “futures gap” at 7,200 US dollars seems to help maintain the higher levels.