More like ‘shock-to-flow’ — BTC price hits bull trigger as mystery buyers scoops up supply
In the last couple of days, Bitcoin has been gaining momentum as the price crosses the $7,000 mark, reaching its highest value in over a year. Despite the price spike, there are still many questions about the true identity of the buyers. The most popular theories include that it is related to the massive amount of new money entering the market and the increased demand of Bitcoin.
On November 15th, the bitcoin price threatened to break through the $10,000 mark for the first time. The price first hit $10,000 on Thursday, November 16, after a suspected market manipulation triggered a 30 percent selloff. Bitcoin prices then climbed steadily through the end of the month, reaching a high of $11,865 on November 30. However, since then, the price has fallen approximately 40 percent. In the first week of December, the price fell below the psychologically important $10,000 mark, and by December 7th, it was down by approximately $1,000.
Its time, once again, to flutter around the market of cryptocurrencies, and notice that the bitcoin price is back to the objective, when it valued $7,000 per unit. After the latest rally, investors are now flocking to cryptocurrencies as a safe haven, with the price of Bitcoin and XRP knocking down the $2,000 and $3,000 per each unit respectively, for a total of more than $8 million in bitcoins.. Read more about stock-to-flow bitcoin and let us know what you think.
If one traditional pricing model replicates past behavior — assuming buyers continue to support it — Bitcoin (BTC) may see a new price rise.
Analyst William Clemente highlighted in a tweet on Aug. 3 that BTC/USD had entered a bullish springboard zone on the stock-to-flow model.
Stock-to-flow triggered bull trigger has “good chances,” according to one analyst.
Despite staying well below stock-to-flow predictions on a daily basis, Bitcoin may now be able to exploit that apparently negative signal.
The stock-to-flow deflection, or the difference between Bitcoin’s price and the model’s prediction, is currently so large that it has only been equaled five times in Bitcoin’s history.
After hitting this lower deflection limit on prior occasions, Bitcoin has “gone on an incredible tear.”
In remarks on an accompanying graphic, Clemente said, “I like my odds.”
Stock-to-flow deflection chart for BTC/USD. Source: Twitter/William Clemente
Despite the recent BTC price drop, stock-to-flow inventor PlanB has stood with his invention in the face of skeptics, forecasting a minimum end-of-year price of $135,000, according to Cointelegraph. He has described this as a “worst-case scenario.”
As BTC transactions increase, OTC purchasers are suspected.
Meanwhile, large-volume investor activity may already be aiding in the suffocation of the stock-to-flow bull case’s “flow” component.
Related: 5 things to watch in Bitcoin this week if you’re betting on tax bill rumors
An unnamed market force is purchasing “a lot” of BTC, according to data from on-chain analytics firm CryptoQuant, but not via exchanges.
“Bears may be in danger if prominent names reveal their purchases. Short-term price movement, though, is something I’m not sure about “On Twitter, CEO Ki Young Ju made a comment.
Annotated graphic of Bitcoin money flow vs. token transfers vs. BTC/USD. Ki Young Ju/Twitter is the source of this information.
Analysts have previously noticed the pattern, although they have advised caution in trading at present price levels as BTC/USD tries to consolidate.
CanteringClark, a prominent Twitter trader, stated Tuesday, “I am a Bitcoin buyer over 40k or below 36k.”
“Right now, we’re building up some lengthy leverage.”
The legacy bitcoin cash (BCH) chain, with a market cap less than 1 percent of bitcoin (BTC), is now worth more than the other two combined. This alarming development occurred because of a massive sell order, which is a massive amount of money being pulled out of the ecosystem. It was executed by a single unknown seller, who apparently pulled their “shock-to-flow” approach to the market.. Read more about bitcoin price prediction and let us know what you think.
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