From lows of $ 3,600 to all-time highs of just over $ 24,000 2020 was the year Bitcoin (BTC) surprised analysts like never before.
With the prediction that your next step will also be more difficult There has never been more demand for an accurate Bitcoin pricing model.
Cointelegraph takes a look at how business has done best this yearand what’s worth tracking when 2021 begins, possibly starting with $ 20,000.
Stock to flow
No matter how you look at it 2020 was the year the bitcoin pricing model for the flow of stocks grew up.
Already one of the best known in the industry, The various incarnations of stocks that were supposed to flow followed BTC / USD from their dramatic annual lows and soared again.
The best of all is that The entire Bitcoin behavior program continued to meet the requirements of the modelsFrom December 19, the stock follows the letter (or number).
The relationship between inventory and flow is based on the amount of an existing asset (the inventory) versus the amount added by its creation (the flow).. In the case of Bitcoin, this ratio is inextricably linked to the averages of the block subsidies, which reduce the flow by 50% roughly every four years.
Such as, Bitcoin’s share grows with each halving, and currently nothing prevents you from reaching and receiving the highest percentage of any known asset.
In terms of price, PlanB has created several variants of the forecast based on the stock to be flowing, the anonymous analyst who has become a household name among Bitcoiners.
Different price targets must be achieved for each model during the current halving cycle by 2024. The most conservative is $ 100,000 by the end of 2021.
Despite this year’s criticism of the stock-to-flow relationship PlanB defended its model and its belief was rightly rewarded when Bitcoin exactly raised the price of the model last week.
Elliott wave theory
It’s been a year of testing another popular bitcoin price prediction tool. The Elliott Wave Theory, more of a price card than a rigorous set of goals, had a difficult twelve months.
Although not specific to Bitcoin, Elliott Waves offers a multi-stage market cycle that aims to track the ups and downs of an asset.
However, Because of its non-specific nature, these predictions are often huge, but Bitcoin has delivered before due to its inherently volatile nature at the beginning of its existence.
2020 also brought moments of clarity with Elliott WavesHowever, April’s forecast of a further drop to $ 3,000, coinciding with the bear market bottom in 2018, has not materialized.
To the last, A sight to consider at $ 23,000 is the position of Bitcoin on what is known as the Rainbow Chart.
A happy BTC / USD record card, The chart breaks the price level down into a series of buying and selling tips, roughly one for each color of the rainbow.
From red (“maximum bubble area”) to dark blue (“basically a fire sale”), These tips tell investors and hobbyists what to expect from Bitcoin based on whether it is up or down.
At the moment even at all-time highs BTC / USD continues to rise and is only in the light green area that the model describes as “still cheap”..
As with the stocks to flow, the Rainbow chart therefore predicts higher upside potential for Bitcoin.Now that the $ 20,000 resistance is a thing of the past.