At this point following Bitcoin’s halving, expectations were that the cryptocurrency’s price would be a lot higher. This expectation is primarily due to Plan B’s stock-to-flow model – a valuation method based on the asset’s digital scarcity.
But before anyone writes off the theory as invalid, another analyst has provided key levels and dates to watch for, which would prove the model invalid if not reached in time. Here are the most important dates and levels critical to this valuation method remaining accurate.
Belief In Plan B’s Stock-To-Flow Model Is Beginning To Wane
“$50K by May 2020” was a commonly heard target all throughout 2019. That price target made the cryptocurrency’s mid-2019 rise to $14,000 all the more believable that a new bull run was beginning.
But $14,000 came and went, resulting in another repeated trip back to below $4,000 on Black Thursday. Now, Bitcoin is back retesting highs from last year but has since been unable to retest