Bitcoin price will increase 10 times, within 1-2 years after halving

An anonymous analyst at PlanB shared his views on the price of bitcoin after the upcoming halving.Heclaims that the third bitcoin halving will be the same as in the previous two, held in 2016 and 2012.

After these two halvings, the Bitcoin network experienced rapid growth for several months, registering new historical highs.

"The value of bitcoin should increase 10 times in 1-2 years after it happenshalving".

IMO #bitcoin 2020 halving will be like 2012 & 2016.As per S2F model I expect 10x price (order of magnitude, not precise) 1-2 yrs after the halving.Halving will be make-or-break for S2F model. I hope this halving will teach us more about underlying fundamentals & network effects pic.twitter.com/kiTdN0n3Lu

- PlanB (@ 100trillionUSD) April 16, 2020

Experts argue that this time may change slightly due to the impending recession, as COVID-19 brings the world economy to hysteria.

However, PlanB insists that priceBitcoin perfectly matches the stock-stream model. In fact, he expects Bitcoin's price to rise at least 10 times compared to its current price in one or two years.

PlanB said May Halving will be an eventMake or break for a stock to flow model. In other words, if bitcoin does not increase tenfold, we must consider its model for forecasting bitcoin prices invalid.

In a subsequent tweet, PlanB refers to the fact that although it expects to maintain the S2F-price relationship, it will massively abandon the model if BTC does not increase by 10 times.

Bitcoin on the way to growth

In mid-March, bitcoin experienced the worst.one-day loss since 2013. However, PlanB claimed that despite the crash, Bitcoin still corresponds to the S2F model, as it remained within the model band.

More recently, he noticed that the IndexBitcoin's relative strength (RSI) is the weakest it has ever had before it halved. RSI is a technical indicator that shows whether an asset will be resold or re-bought at a specific price. At the moment, RSI BTC is at a historic low, suggesting that OG cryptography is intimidatingly resold just a few days before it halved.

Halving cuts Bitcoin miners reward in twotimes. This reduces BTC annual inflation, and then improves the ratio of reserves to flow as it approaches gold levels. The stock flow model has historically correctly predicted the price of bitcoin. Interestingly, the model was even taken into account in the unprecedented bloodshed of cryptocurrencies last month.

Bitcoin currently ranges just above $ 7,000. According to the PlanB model, BTC should reach $ 100,000 by December next year.

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