Bitcoin has been caught within the throes of a powerful and enduring downtrend over the past many weeks, that was first sparked once the crypto did not stabilize on top of $10,000 in late October.
This downtrend, however, might soon draw to an in-depth, joined evaluation model suggests that Bitcoin might be on the cusp of another major value rally that may permit it to climb considerably higher, with one analyst noting that he wouldn’t be stunned if BTC ends the year over $10,000.
Bitcoin Surges from Lower-$7,000 Region
At the time of writing, Bitcoin is trading up over five-hitter at its current worth of $7,550, which marks a huge climb from its recent lows of $6,500 that was set at the lowest of the recent market sell-off.
Today has well-tried to be a bullish day for Bitcoin because it was able to surge out of the lower-$5,000 regions and extend the upwards momentum that was first sparked once it visited lows of $6,500 earlier in the week.
Further enhancing the bullishness of this movement is that the indisputable fact that Bitcoin was able to break higher than its previous resistance level at $5,500 and valid the bullish inverse head and shoulders pattern that it had been forming.
Economic Pricing Model Suggests Further Upside is Imminent
Analysts are currently noting that the stock to flow model – that tracks the expansion in BTC’s supply compared to that which is already circulating and correlates it to cost action – suggests that Bitcoin might finish the year at over $10,000.
PlanB, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:
“Call me crazy, but it wouldn’t surprise me if BTC closes 2019 at $10k+… opportunities like this (#bitcoin below S2F model value, 6 months before the halving) are rare.”
FlibFlib, another popular cryptocurrency analyst on Twitter conjointly spoke concerning this model and what it might mean for Bitcoin within the near-term, telling his followers that it will point to the chance that the crypto can see vital more upside within the near-term.
“Bitcoin’s Stock to flow model. Currently below s/f by 15-20%. It's not a race but it if you believe in the narrative, its time to pay attention.”
The coming four weeks will likely provide significant insight into where the crypto markets will trend throughout the first part of 2020.