Bitcoin has hit a new low of $9,880 USD today on 7th Sept as the bear continues to gain more strength within the market, renewing the holder’s selling pressure.
Even though Bitcoin [BTC] is now back above the $10k level, the unstable performance over the weekend & the latest bearish fall shows that $10k isn’t a probable price for the cryptocurrency, this is often contrary to what several analysts said its pivot point would be within the short-term.
Similarly, the propounder of the Stock-to-Flow Model, analyst PlanB, thinks bearish of Bitcoin within the short-term. PlanB who is one among the foremost respected and popular analysts in the cryptocurrency ecosystem averred in an illustration that indicators from the Stock-to-Flow (S2F) Model show that Bitcoin [BTC] is probably going to witness a more bearish fall in upcoming days.
PlanB within the illustration revealed that the 100 weekly Moving Average (MA) of the leading cryptocurrency by market cap is way below its present price.
Although, the assumption of the many analysts and traders including PlanB is that the long-term target of Bitcoin is very profitable and promising. An imminent plunge is arriving ahead of the cryptocurrency.
PlanB revealed that the 200 weekly moving average that is at $6600 USD has been increasing at approximately $200 monthly. He expressed that this playout of the cryptocurrency on the market chart is somewhat weird as Bitcoin 200WMA has never gone this low. The analysts added that “BTC monthly close has never been below 200WMA.”
He further compared this run within the cryptocurrency market to what was witnessed earlier in March 2017 when BTC was battling $1,000 per unit market price.
Then, Bitcoin visited its all-time high of $1,200 USD from $700 USD in January. However, BTC later plunged, reaching around $900 USD at the end of March. The plunge was later succeeded by a huge bullish rally that took Bitcoin up to around $20k earlier in December 2017.
This is likely what analyst PlanB expects from Bitcoin within the long-term. The analyst thinks, that this fall shouldn’t cause many worries as this is often not the primary time Bitcoin will witness pull back.
Otherwise, pseudonymous analyst PlanB said consistent with the S2F model, the last red dot on the chart which indicates monthly closing prices last registered $10,150 USD earlier on 7th Sept. He added that the red dot indicator has about 3 more weeks to rise above $11,655 USD – August close.
He further added that even if it doesn’t within the stated time, staying below “$11655 USD at Sep close,” it wouldn’t be a primary thing as a similar rally was seen in Mar 2017 and May-Jun 2013.