Bitcoin (BTC) spending over three weeks in the $30,000 range is proving a crucial test for one of its best-known price models.
As noted by Philip Swift, co-founder of trading suite Decentrader on June 11, Bitcoin is issuing a major challenge to the stock-to-flow price forecasting tool.
Is it bounceback time for BTC price?
BTC price action has hovered in a lower corridor between $30,000 and $40,000 since mid-May. This has worried day traders, while vintage bulls have called for calm and a long-term mindset.
As Cointelegraph reported, the stock-to-flow model continues to accommodate such behavior, even if its estimates call for a BTC/USD value closer to $70,000.
Its creator, PlanB, has nonetheless voiced concern over the future. Should current levels remain for a longer period, his model risks becoming invalidated for the first time in its history.
Highlighting spot price divergence from the stock-to-flow average, Swift explained that such instances have in fact occurred before. Each time, Bitcoin bounced off a given price point