Plan B is one of the fathers of the Stock-to-Flow Model, a theory that predicts Bitcoin‘s future price growth. The model has gained a lot of attention since its publication. Let’s take a closer look at it. Its basic premise is that Bitcoin is here to stay. Consequently, it expects the price of Bitcoin to explode in the near future.
Plan B’s stock-to-flow model
Plan B is an investment firm that has been developing a stock-to-flow model. The stock-to-flow model is a way to value digital assets based on scarcity. The model was first published with bitcoin as its focus. It has been incredibly accurate in the past, and is still among the most accurate today.
The S2F model has received mixed reviews, however. Critics point out that it only takes into account the supply of BTC and assumes that demand will be constant. As of November 2018, Plan B predicted that Bitcoin would hit a high of $69,000 by the end of 2021, but it eventually crashed to under $20,000. This led some crypto analysts to look more closely at the S2F model. Ethereum co-founder Vitalik Buterin has also criticized the model.
Bitcoin’s 200-week moving average
The 200-week moving average (200WMA) is an important technical indicator because it can help traders determine the strength and volatility of a currency. The 200WMA is calculated by looking at a currency’s candlestick fluctuations over the last fourteen days. The 200WMA has become a level of support and price resistance for Bitcoin, and its dips below this level have traditionally marked cyclical bottoms.
It is important to note that Bitcoin’s 200W MA has not crossed the 20W MA, which is a lagging indicator. It is therefore worth ignoring the volatility of the market and focusing on the trend.
Price of Bitcoin
The price of Bitcoin is now trading below its realized value and 200-week moving average. That metric tells us whether a top coin is in a bull or bear market. Since its inception, Bitcoin has only breached that level eight times. According to Plan B, the recent declines have been caused by investors who have sold off their holdings.
Plan B is a pseudonymous Twitter user who shares his predictions for the price of Bitcoin. He has over 1.5 million followers and has become a prominent Bitcoin price analyst. His predictions are based on his Stock-to-Flow model, which takes into account scarcity as a determinant of value. He has spent his career in finance, and is well-versed in both quantitative and legal aspects of the industry.
Price prediction
If you’ve been following the bitcoin market and reading price predictions, you’ve probably come across the name Plan B. This investment management company is well-known for sharing their predictions about the price of Bitcoin and other cryptocurrencies. However, their year-end prediction for Bitcoin has come under some scrutiny.
The price prediction made by PlanB is based on their S2F model, which predicts Bitcoin’s future price. If PlanB is right, Bitcoin will hit $100k in 2021. Their model taps into S2F and logarithmic regression to predict price movement.
Twitter activity of Plan B
Plan B is a pseudonymous Dutch Bitcoin price analyst who boasts a following of 1.5 million people. He is best known for his popular Stock-to-Flow model, which uses scarcity of bitcoin supply as a basis for its price. The S2F model is very popular among cryptocurrency investors because it suggests that bitcoin will increase tenfold every four years. Plan B is a financial industry veteran and has worked in quantitative finance for 25 years. He has received a great deal of attention for his predictions, and has a substantial following on Twitter.
According to his Twitter activity, Bitcoin is trading at a price below its historical high and below its 200-week moving average, which tells whether it is in a bull or bear market. This is concerning as Bitcoin has only breached this level eight times since its inception. In addition, Plan B also claims that Bitcoin is trading well below its projected trajectory according to a stock-to-flow model. In his tweets, Plan B argues that this is an indicator of weak hand investors selling off their holdings, which he believes will lead to a price drop in Bitcoin.