PlanB, the author of the Stock-to-flow (S2F) price prediction model, asserts that Bitcoin (BTC) is unlikely to drop below $ 8,200 even though the leading cryptocurrency has plunged 13% in the past week.
Bitcoin will still hold the price above the 200 WMA moving average
As previously reported, Bitcoin price has dropped below $ 9,000. Posted on Twitter on February 26, PlanB confirmed $ 8,200 as the final bottom of the sale.
$ 8.2k bottom still stands. It would really be unprecedented if it breaks, never happened before. Note it has nothing to do with s2f.
– PlanB (@ 100trillionUSD) February 26, 2020
“The threshold of USD 8,200 will still stand. It would be horrible if this threshold was unsafe and it had never happened in the past. ”
PlanB makes this prediction because Bitcoin has never dropped below the 200-week WMA line in the past. Therefore, despite the recent moves, it is difficult for Bitcoin to form a new bottom this year.
Dropping below the 200 WMA moving average is also an indication that Bitcoin is no longer following the path outlined by the S2F model. Up to now, PlanB's S2F model is the most accurate pricing model. S2F also makes a $ 100,000 prediction for Bitcoin before 2021.
PlanB's latest tweet also reiterates the analyst's predictions from early February when he confirmed that the price of Bitcoin would stabilize above $ 8,200 and that after Halving would cost $ 10,000.
Over the past 3 days, Bitcoin has dropped $ 1,000 and has fallen nearly 18% since failing to conquer the $ 10,600 resistance level. Despite the recent plunge, Bitcoin price has increased by 20% since the beginning of the year.
Cryptocurrency market continues to “mung lung”
In addition to Bitcoin, the altcoin market is also flooded with red, causing the total market capitalization to evaporate $ 25 billion within a mere 24 hours. At the time of writing, the total market capitalization of cryptocurrencies is $ 248 billion.
Ethereum, the second largest coin in the market, also faced many challenges after falling 10% after 24 hours. Bitcoin SV, EOS and Litecoin also dropped dramatically by 15% in the same period.
If this trend continues, the altcoin market could be bleak again in 2020. This decline is not only unique to the cryptocurrency market, when US stocks also plummeted in a few In the past, some experts forecast the reduction could be up to 25%.
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According to Coin68 / Bitcoinist