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"Bitcoin is about to enter a full bull market based on this key indicator"


After consolidating and stagnating for several weeks, bitcoin finally showed some signs of higher push last week. The top cryptocurrency is now trading at around $ 10,000, marking a 10% recovery from the $ 8.6K lows posted during a major correction over the course of May.

Bitcoin has just added another massive factor to the bullish case as an indicator that previously pointed out that a bull market has just appeared. This was pointed out by analyst PlanB, the creator of the stock-to-flow model.

PlanB revealed an update to its stock-to-flow model in a tweet on 1st June. In his tweet, the analyst indicated that a signal that was last seen three years ago has returned.

The red dot has appeared after every halving and has always preceded a new bull market. According to the PlanB chart, this bullish indicator suggests that a strong market movement has just started that will send BTC to $ 100,000 by the end of next year.

The stock-to-flow (S2F) model analyzes the value of bitcoin along with that of traditional precious products such as gold and silver by calculating the amount in circulation against the total amount minted each year. As the rate of new bitcoins mined decreases, the S2F ratio of the asset increases. The PlanB model shows that the bitcoin price closely follows the S2F ratio, which it demonstrates using points. Each point marks the monthly closing price of bitcoin.

After each halving, the rate at which new bitcoins are produced is halved. This is represented by the first red after a halving event. The red dot that just appeared was last seen just before the 2017 bull market, suggesting that a new bitcoin run is on the horizon.

Crypto report reported In April, PlanB released a review for the S2F model known as the stock-to-flow cross-asset (SF2X) model that predicts bitcoin will be valued at $ 288,000 by 2024.

Could BTC break the $ 10k barrier soon?

PlanB's claim has also been corroborated by other market indicators. For example, Glassnode recently observed that 60% of BTC supply has not moved in over a year, suggesting "Greater HODLing Investor Behavior". This is crucial because the last time we saw this trend on the chain was just before the 2017 bull market.

Also, other market watchers are optimistic about the bitcoin price in the near future. Analyst Parabolic Thies postulated that BTC is about to break out of a downtrend that formed just after the $ 20k peak in December 2017. Thies believes that the bitcoin that closed the may candle above $ 9.3k was "Incredibly significant for bulls", which implies that BTC could soon see more advantages.

Bitcoin is currently changing hands at $ 10,160 at press time. Breaking the $ 10k resistance was easy, but it will open the door to new highs. And with all the positive indicators, we may very well be about to witness a repeat of BTC's rise in late 2017.

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