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Bitcoin is the same A way to retest The $69,000 price level is back in the early hours of Monday, October 28, as the bulls look to start the week on a positive note. A notable break above $69,000 would set the stage for a sustained rally in the coming months.
Talk about constant gatheringThe Bitcoin stock-to-flow model points to an interesting trend in the long-term outlook for Bitcoin. In particular, the “Plan B” cryptocurrency analyst pointed to the stock-to-flow pattern to indicate that BTC is ready for the next transition phase.
BTC is ready for the next stage of the transition
The Bitcoin Stock-to-Flow (S2F) pattern is attracting attention because it suggests that Bitcoin may be preparing for a new transition phase that will… Set its price above $100,000. The S2F model, originally developed for commodities such as gold and silver, measures the current supply of the asset against the rate of new units entering the market. In the case of BTC, the S2F model calculates scarcity by taking the fixed supply of 21 million BTC into account, along with the block reward halvings that reduce the new supply every four years.
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Each halving event causes the issuance rate to decrease, resulting in increasing scarcity. The model correlates with price growth. According to the S2F scheme Shared by Plan BThese halvings led to a price increase in the following months, with the S2F model accurately predicting that Bitcoin would move to new price levels.
The price of Bitcoin last halved in April 2024, reducing the block reward from 6.25 BTC to 3.125 BTC. According to the S2F chart, previous Bitcoin halvings always marked the beginning of the price transition to a new phase. For example, the halving in 2020 began moving into a new phase above $10,000 which culminated in BTC reaching the previous all-time high of around $66,000.
Now six months after the April 2024 halving, the effects of the halving are starting to be factored into Bitcoin supply and demand. As such, Bitcoin is looking Prime for transition over $100,000.
What does this mean for the price of Bitcoin?
Since the previous transition phase has ended, a phased transition above $100,000 would boost Bitcoin price above this level. Since the $100,000 price level now acts as a price floor, this would give Bitcoin price support to continue rising in the following months.
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Previous phase shifts have always led to a new peak before the other half. The expected peak for this stage is just under $1,000,000. If previous trends hold true, Bitcoin’s price could reach this impressive milestone before the next halving, which is expected to occur in 2028.
At the time of writing, Bitcoin is trading at $68,340.
Featured image created with Dall.E, chart from Tradingview.com
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