- 1 Bitcoin active addresses have observed a mere gain of 1.01% in the past 24 hours.
- 2 Stock to flow model suggests that the BTC will hit a high of $200K.
- 3 BTC price is currently trading near the value of $61404 with a drop of 4% in the past 24 hours.
Bitcoin is the biggest crypto currency in terms of price and market cap. At the time of writing, with the Bitcoin price action largely low on volatility year-end predictions are taking off in the market.
As optimistic predictions take over, it is crucial to take a look at what a more realistic future for Bitcoin price will look like.
Bitcoin Price Action At Crossroads
Recently, the Bitcoin ETF scene has set a path for the investors to securely invest in the digital asset. The US ETF funds witnessed an inflow of $21.52 Million while FBTC saw a surge of $19 Million surge this week.
The 11 Spot Bitcoin ETF has seen a modest gain in the last week trading session. GBTC witnessed a $4 Million increase while Vaneck’s saw a surge of $3 Million inflows.
Despite money inflows in the Bitcoin ecosystem via ETFs and institutions, price action is looking mostly bland. For now, various indicators have been showing that Bitcoin price could see a high of $200K in the near future, but can it truly materialize? Let’s have a look at the Stock to Flow price prediction model for BTC.
Bitcoin Near $61K But S2F Says Something Else
Bitcoin is compared to commodities and precious metals like gold, silver, or platinum in the stock-to-flow concept because of their relative scarcity. These commodities are referred to as “stores of value” since their value holds steady over extended periods of time. Bitcoin is similarly comparable to these assets in many ways.
Like the Gold and Silver BTC also needs the effort of mining which makes it similar to these commodities. Stock to flow model works on the similar concept and forecasts the price of BTC.
Source: Stock to flow model by Lookintobitcoin
Stock to flow had not always been correct. If we look at the previous highs of BTC and compare with S2F it had a difference of $20k.
When the Bitcoin price reached near $70k the S2F model predicted that it would be near $52k. These are some of the instances that prove that S2F has not worked. Meanwhile, in some instances, the Stock to Flow model has correctly predicted the price.
Stock to flow model currently suggests that the price of BTC will be near $200k at the end of 2024. If we look at the mean deviation from the prior historical points and plot it then BTC can hit the high of $150k by the end of 2024.
Bitcoin On A Rollercoaster Ride, Will It Safely Land?
Bitcoin has a market cap of $1.2 trillion and is currently ranked 1st in the crypto-verse. BTC is currently trading near the value of $61602 with a slight gain in the intraday session.
Bitcoin is forming consolidated candles on the daily chart. It is trading below the 50 and 100 EMA and has given a negative crossover. The upside trend of BTC can observe a halt near the value of $65k. Meanwhile, the support of the asset price can be seen near $58K.
The RSI of Bitcoin price is currently near 36 with a small positive slope. The overall sentiment of the BTC is bullish. Bitcoin consolidation has been continuing despite the bullish sentiment and positive outlook of the ETF. If BTC price has to touch $150k in the near future then a strong surge of active addresses and inflow is required in the ecosystem.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
