Over 98 000 dollars by the end of the month?
Bitcoin has broken the ATH today. It has done so yet again. The latest ATH was created only few days ago and it is probable that the next one is only few hours/days again. Many analysts and crypto enthusiasts are very optimistic about the last two months of the year 2021. In fact, the Q4 has been warmly expected by most of the cryptocurrency projects and the whole infrastructure, since many people believed it according to several models, this was supposed to be the time that the real bullrun really exploded.
One of the models that saw the prices of Bitcoin explode was the Stock-to-Flow model by PlanB. This pseudoanonymous creator of the S2F model has been extremely bullish about the price of Bitcoin. In fact, in July he stated that he believes that by the end of August, the price of Bitcoin will be over 47 000 dollars, by the end of September above 43 000 dollars and by the end of October over 63 000 dollars. And while the Octobers´ prediction was not hit (October closed at around 61 500 dollars) it is important to note that PlanB made these predictions from the S2F, when the prices were around 35 000 dollars. Moreover, the predictions of August and September were spot on.
And what does the model predict for November? According to PlanB, if everything goes as the Stock-to-Flow model forecasts, the price of Bitcoin by the end of this month should be trading above 98 000 dollars. Moreover, by the end of December the price can be above 135 000 dollars. That means that there is a chance that Bitcoin can more than double in less than two months. Well everyone still needs to be careful.
Not celebrating just yet
Fractals, models, historical price charts and many more. In recent days, you might see many other arguments by crypto enthusiasts as to why Bitcoin should be sharply growing in the upcoming weeks. And even though it might be true, there are always two sides to a coin. In this world that means that you should not only focus on the growing potential of Bitcoin (which there is for sure), but also be ready for the sideways movements or declines. In this sector, just as with any financial sector, no one can know where the prices of any assets will go.
Therefore, even though it looks like there is only one way to go from here now, you have to always take into account the other options. Moreover, we have seen in many cases that cryptocurrency world does exactly the opposite of what is expected of it. And since everyone is expected Bitcoin and all the altcoins to go up, this sector can once again surprise.
There are not many indicators that would indicate that the cryptocurrency world can go down from here, but you can never rule out that option. For instance, the volumes with which the Bitcoin broke its ATH was not very significant, meaning that it might have only been a minor break after which the price will consolidate again.
Thus, as always, be very careful when entering any position, especially in cryptocurrency world. Bitcoin can be in the “price discovery stage” where the huge jumps can happen, the fact is that increased volatility can be seen, which can always surprise the newcomers.