1d3b0f9f2549bd459928af2d99db88d5.jpg

Bitcoin mirrors gains of past halvings, suggesting $41K price in 2020


Bitcoin (BTC) is charting its way directly between the previous two block subsidy halvings that sent its price an order of magnitude higher.

In a tweet on Sept. 2, PlanB, creator of the stock-to-flow (S2F) BTC price models, told investors to be “patient” when it comes to price appreciation.

Bitcoin price remains on track four months after halving

Despite bouncing near $11,000 support on Wednesday, Bitcoin has performed exactly as expected on monthly timeframes since its last halving event in May.

Reluctance to break and secure $12,000 as support has characterized price action since, but progress on the monthly chart is plain to see.

“Reminder: we are still early, only 4 months after #bitcoin 2020 halving, nicely between 2012 and 2016 paths,” PlanB commented. 

“Patience is a virtue.”

An accompanying comparative price index chart showed Bitcoin in 2020 adding gains that are between those of 2012 and 2016.

As such, BTC/USD remains firmly within the range of possibility for increasing by an order of magnitude once again. According to S2F, this should see a price target of $288,000 in the current halving cycle, which ends in 2024.

Bitcoin price post-halving comparison. Source: PlanB/ Twitter

$41,000 end-of-year BTC price target appears

Over the weekend, meanwhile, another chart painted an even more bullish outlook for Bitcoin. 

Taking May’s halving as a starting point, data analysis resource Ecoinometrics produced a price target for $41,000 for the end of this year.

“Looking solid,” the firm said on Twitter, adding that $100,000 should appear by April 18, 2021.

Bitcoin price forecast post 2020 halving

Bitcoin price forecast post-2020 halving. Source: Ecoinometrics/ Twitter

The targets were compiled using average growth after Bitcoin’s previous halvings.

Meanwhile, short-term changes in network sentiment have not contributed to a change in long-term outlook. These include a spike in outflows from mining pools indicative of selling activity this week, data from on-chain monitoring resource CryptoQuant showed.

Chinese mining pool Poolin saw outflows of 490 BTC, the majority of the activity.





Source link

Share on facebook
Share on twitter
Share on linkedin

You may also like