PlanB, creator of the popular Bitcoin price forecast chart “Stock-to-Flow”, has set a $ 135k target for BTC by December 2021.
What is the Bitcoin Stock-to-Flow Model?
The BTC stock-to-flow (S2F for short) method is a price forecast model popular by PlanB. Based on the ratio between S2F stock (current supply) and flow (annual production).
It is often thought that PlanB itself is the creator of the S2F model, but this is not the case. The method has been used in the past for other assets such as gold and silver, but PlanBe was the first to implement it for Bitcoin. Thus, PlanB is the creator of the Bitcoin S2F chart, although not the original concept itself.
The stock-to-flow value of an asset like BTC shows how rare it is. The model relates this value to the price and makes a prediction based on it.
Here is the latest price list based on BTC’s S2F model:
Bitcoin price according to the S2F model | Source: buybitcoinworldwide
As visible in the chart above, the method was significantly closer to the real thing in its prediction. Although there were a few points of deviation, prices always return to the curve.
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Planby thinks BTC could reach $ 135k by December
Earlier this month, PlanB listed their Bitcoin targets Tweets. Earlier, the analyst’s target was more than $ 47k for August and above $ 43k for September, both of which confirmed that the tweet was met.
Subsequent targets for S2F Popularizer include more than $ 63k for October, over $ 98k for November and finally at least 5 135k for December.
According to the S2F model, Bitcoin should reach k 100k by December and these targets seem to be consistent with that.
Reaching $ 100k in December will be a make or break moment for the famous price forecast model as the month is now just a few months away. At the moment, the price of BTC is around $ 47.6k, up 10% in the last seven days.
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Here is a chart showing the price trend of BTC in the last five days:
BTC's price seems to have flattened in the last few days after a sharp move up | Source: BTCUSD on TradingView
Bitcoin’s volatility seems to have returned over the past few weeks as prices have shown a lot of chaotic movement in September.
But the value of the currency has now flattened again and it is unclear when it will move in which direction. However if the S2F model goes anything, a step needs to be taken soon.