Bitcoin ( $60,115.00 ) (BTC) has never been as far below its target price as it is now, the stock-to-flow model shows this week.
In a tweet on July 10, Lex Moskovski, chief investment officer at Moskovski Capital, showed stock-to-flow flagging a historic moment in Bitcoin ( $60,115.00 ) ’s twelve-year lifetime.
“Great buying opportunity”
With BTC/USD showing few signs of a genuine bullish recovery, the pair has been drifting ever further from the price that the stock-to-flow price model calculates it should have.
Stock-to-flow is arguably the most popular of the Bitcoin ( $60,115.00 ) forecasters, and has historically tracked BTC price action with surprising accuracy, taking every anomaly into account to remain valid.
As Cointelegraph reported, however, current behavior is giving stock-to-flow a run for its money, and as of now, its target price comparatively has never been so far from reality.
“Negative Stock-To-Flow deflection is the highest it’s ever been in the whole Bitcoin ( $60,115.00 ) history,” Moskovski commented.
“This is a great buying opportunity, if you’re a believer in this model.” Bitcoin ( $60,115.00 ) stock-to-flow deflection vs. BTC/USD chart. Source: Lex Moskovski/ Twitter
According to the Stock-to-Flow Multiple, BTC/USD should be trading at $82,703 on Saturday. At the time of writing, the actual spot price was $33,850 — 59% lower.
The model’s creator, PlanB, has stuck by a seriously bullish view on Bitcoin ( $60,115.00 ) for 2021, his latest price prediction calling for $135,000 by December as a “worst-case scenario.”
The analyst is currently off the grid and not commenting on events, promising to return in August, which has a minimum price target of around $47,000.
Bitcoin ( $60,115.00 ) stock-to-flow model as of July 10. Source: Buy Bitcoin ( $60,115.00 ) Worldwide.com
Stock-to-flow faces serious bear calls
PlanB has never ruled out stock-to-flow becoming invalidated at any point, and this could become a reality if the most bearish scenarios become reality.
Related: PlanB feeling ‘uneasy’ as 41% of his followers tip $100K BTC won’t happen this year
Among them is a $10,000 warning from Scott Minerd, the Guggenheim executive who this week claimed there was not “any reason” to buy Bitcoin ( $60,115.00 ) under current conditions.
Other data points to an extended recovery period for Bitcoin ( $60,115.00 ) fundamentals, while December could bring selling pressure once more, in line with historical precedent.
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