Bitcoin Now ‘Perfectly On Track’ At $ 100,000, Says Stock to Flow Creator

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PlanB, the well-known creator of the contested stock-to-flow (S2F) model, believes that Bitcoin (BTC) is now on track to hit $ 100,000 as the price has hit annual highs. The optimistic sentiment coincides with the shift in momentum from alternative cryptocurrencies, or altcoins, to BTC.

He said:

“I can’t do a map for you now (at sea), but the S2F is perfectly on the right track. “

At the same time, the price of Bitcoin rose 17% this week as it crossed a major three-year trendline. As Cointelegraph reported, traders apparently expect BTC to test higher resistance levels in the short term.

Bitcoin’s price surpasses $ 11,700 in a rapid intraday rally. Source: TradingView.com

Data shows it may be time for Bitcoin to shine

Altcoin has particularly fallen over the past 72 hours when the price of Bitcoin has started to rise. Ethereum Ether (ETH) has moved in tandem with BTC throughout the rally, but has slumped against BTC in the past two days.

In the near term, as Bitcoin sees a lucrative altcoin rally, some investors expect BTC to outperform altcoins. Kelvin Koh, co-founder of Asian venture capital firm Spartan Group, said:

“If BTC breaks the resistance at $ 11.4K, we are going above $ 12K in no time. Will be the wind of the alts again in the short term. “

The pattern of a Bitcoin rally after a strong altcoin season is not new. In previous cycles, the major cryptocurrency generally experienced a strong uptrend after altcoins initially gained against BTC. Such a trend materializes because investors look for safer options, like BTC, when the altcoin market is overheated.

More recently, the fear of missing out, or FOMO, of retail investors around DeFi has driven small-cap tokens to rise dramatically. In the early days of the DeFi market craze, for example, Compound (COMP) saw a major rally. Then smaller tokens including Yearn Finance (YFI), Synthetix Network (SNX) and Aave (LEND) followed.

Eventually, as the small tokens saw their prices rise five to ten times, investors began to take profits. The abrupt withdrawal of DeFi tokens coincided with a BTC rally as momentum returned to Bitcoin.

Traders say the trend is still up

Data from Skew shows that tens of millions of dollars in short-term contracts are still being liquidated. This indicates that a relatively large number of investors are betting against BTC in the short term.

Liquidation Bitcoin sur BitMEX. Source: Skew

Cryptocurrency trader Cantering Clark said that if he understands why shorts are compelling, the uptrend is too strong. He said:

“Looking at trades from an R: R perspective is good, but understanding the context is better. After a major contextual change like this, you can assume that your shorts have a lower probability of resolving successfully. Bets should always be on strength. “

For some traders, a short sale against Bitcoin might be interesting as BTC rose sharply last week and is testing major resistance levels.

A 17% rally in six days – even during a bull market – is substantial, even for Bitcoin. But when the trend of BTC is extremely bullish, a short squeeze could only add fuel to the rocket.

In the past 12 hours, more than $ 23 million worth of shorts have been sold off, for example, with the price hitting $ 11,750. So, during a strong upward price trend, shorts could indirectly catalyze a larger rally.

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