Bitcoin has hit a new low of $9,880 on September 7 as the bear continues to gain more strength in the market, renewing the holder’s selling pressure.
Even though Bitcoin is now back above the $10,000 level, the unstable performance over the weekend and the latest bearish fall shows that $10,000 is not a probable support level for the cryptocurrency, this is contrary to what many analysts said its pivot point would be in the short-term.
Similarly, the propounder of the Stock-to-Flow Model, analyst PlanB, thinks bearish of Bitcoin in the short-term. PlanB who is one of the most respected and popular analysts in the crypto space averred in an illustration that indicators from the Stock-to-Flow (S2F) Model show that Bitcoin is likely to witness a more bearish fall in coming days.
PlanB in the illustration showed that the 100 weekly Moving Average (MA) of the largest cryptocurrency by market cap is far below its current price.
Although, the belief of many analysts and traders including PlanB is that the long-term target of Bitcoin is highly profitable and promising. An imminent plunge is ahead of the cryptocurrency.
PlanB said the 200 weekly moving average which is at $6600 has been increasing at approximately $200 every month. He expressed that the present playout of the cryptocurrency on the market chart is somewhat weird as Bitcoin 200WMA has never gone this low. The analysts added that “BTC monthly close has never been below 200WMA.”
He further compared the present run in the cryptocurrency market to what was witnessed in March 2017 when BTC was struggling with $1,000 per unit market value.
Then, Bitcoin went to its all-time high of $1,200 from $700 in January. However, BTC later plunged, reaching around $900 at the end of March. The plunge was later succeeded by a massive bullish rally that took Bitcoin up to around $20,000 in December 2017.
This is likely what analyst PlanB expects from Bitcoin in the long-term. The analyst thinks, that the present fall should not cause many worries as this is not the first time Bitcoin will witness pull back.
In another statement, pseudonymous analyst PlanB said according to the S2F model, the last red dot on the chart which indicates monthly closing prices last registered $10,150 on September 7. He said the red dot indicator has about 3 more weeks to rise above $11,655–August close.
He further explained that even if it doesn’t within the stated time, staying below “$11655 at Sep close,” it wouldn’t be a new thing as similarly rally was seen in Mar 2017 and May-Jun 2013.