A massive battle has been taking place as Bitcoin moves sideways in the past day. The benchmark cryptocurrency trades at $60,938 as of press time with a 1.2% profit in the 7-day chart.
BTC with small gains in the weekly chart. Source: BTCUSD Tradingview
Bitcoin was rejected at the high of its current level driven by a surge in institutional demand. The launch of the first BTC-linked ETF in the U.S. seems to be a potential cause for the rally.
Related Reading | Data Shows Whales Are Dumping, But Bitcoin Holds Above $60k
The market has been cooling off post launch of the investment product leading into a consolidation phase, as noted by QCP Capital in a recent report. The price action could continue in its crab-like trend as the volatility diminishes, the firm places it at 60% during the past days.
In consequence, the general sentiment in the market seems to be flipping bearish or at least uncertain. A large portion of traders and Bitcoin investors count on further gains as November is historically a bullish month for the cryptocurrency.
In support of this thesis, the Stock-to-Flow model created by analyst Plan B has triggered a lot of hype. Created to measure the amount of BTC produce and the market demand as a response, the model makes prediction about the price of Bitcoin.
According to the model, BTC should trend to the upside and reach a price target of around $80,000 in the next two weeks and move beyond $100,000 by the end of 2021.
Plan B has been updating its followers via his Twitter account. The analyst expects Bitcoin to re-entered price discovery with a massive rally in the short term.
Are you ready for +$10K daily candles? pic.twitter.com/SSOCRNalJ5
— PlanB (@100trillionUSD) November 5, 2021
Bitcoin Follows Stock-to-Flow Model Like Clockwork?
In a different post, the analyst shared an updated chart that follows Bitcoin and its trajectory into the $100,000 zone. As seen below, the cryptocurrency approaches the prediction.
Source: PlanB via Twitter
The analyst recently conducted a poll asking his followers if Bitcoin will be able to reach that target, based on the original S2F model, or if it will reach $288,000, based on a prediction made with the S2FX model a variation of its previous model, or if it’ll go beyond by December 2021.
Related Reading | The Fractal That Puts Bitcoin At $100,000 Before Year-End
203.569 people replied to the poll. As of press time, 38.4% believe Bitcoin will be at $100,000 by that time, and 34.4% voted for $288,000.
Do you think #bitcoin will reach $500K, $288K (S2FX model), $100K (S2F model), or will BTC stay below $100K .. by Christmas 2021?
— PlanB (@100trillionUSD) November 5, 2021
Despite its popularity, the Stock-to-Flow model faces heavy criticism. Some find its predictions exaggerated, unrealistic, and based on inaccurate data. Thus, they have taken to accuse the analyst of hyping the market.
Shortly, the model will be invalidated or confirmed if it fails to meet its target. In the meantime, BTC remains rangebound with whales and retails seemingly standing in opposite sides.
Related Reading | Bitcoin Stable, Why BTC Could Aim Fresh Rally To $65K