PlanB’s S2F Bitcoin (BTC) Indicator Turns Bullish for the Third Time — Ever

Pseudo-anonymous Bitcoin (BTC) analyst PlanB has updated his famous Stock-to-Flow (S2F) chart, and crypto-Twitter has gone ablaze. The reason for this is that the indicator is now flashing bullish (red in this case) for only the third time in Bitcoin’s entire ten year lifespan.

The S2F model, explained fully here, essentially establishes a correlation between the time it takes to reproduce the entire supply of an asset and its value. Recently, Bitcoin’s S2F had been trending similarly to silver, although PlanB was estimating that it would begin to more resemble gold (XAU) after the recent halving.

#Bitcoin S2F chart update .. RED DOT RELEASED!!! pic.twitter.com/iNTjbf9b9K

— PlanB 🔴 (@100trillionUSD) May 31, 2020

If it does come to resemble gold’s S2F plot, PlanB thinks a 10x in price is in the cards within two years of the recently-completed halving.

The S2F’s momentous update has come at an interesting time, as just last night Bitcoin performed a rather dramatic reversal to the downside, after a sharp move up.

BTC chart by TradingView

These smaller movements are happening within an incredibly important larger context on the Bitcoin charts, as price tries to break out of a two-year downtrending resistance zone (red). If Bitcoin were to break free from this zone, there is little stopping it from a return to its highs at $20,000.

No worries, red dot is still there pic.twitter.com/tekMXhuuuf

— PlanB 🔴 (@100trillionUSD) June 2, 2020

It is still trending within this zone and fighting at $9,400. We could see this jostling safely move all the way down to about $8,300, and still eligible for a breakout.

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