Although Bitcoin (BTC) is currently experiencing a sideways trading pattern, the majority of the crypto sector maintains confidence that the asset is poised for significant price growth in the future. Indeed, the upcoming halving event in 2024 is viewed as a possible catalyst that could elevate the maiden crypto‘s value.
In this regard, crypto trading analyst PlanB discussed several pricing models in a YouTube video on July 28, which could offer room for Bitcoin to grow toward the $1 million level. He highlighted that historically, Bitcoin has recorded price jumps after previous halving events, focusing on the Stock-to-Flow (S2F) model.
PlanB elaborated on the significance of the model and its relation to Bitcoin’s scarcity and price. He emphasized that the S2F model has demonstrated a notable correlation between Bitcoin’s scarcity and market value.
The fundamental premise of the model lies in the notion that scarcity plays a crucial role in determining Bitcoin’s price, and it quantifies this scarcity using the Stock-to-flow ratio.
According to PlanB, the model shows that the price of Bitcoin tends to surge in response to the increasing scarcity caused by the halving events, a claim supported by historical data from previous halvings.
“You see the 2012 halving, and the price jumps right after that. 2016 halving price jumps right after and same in 2020. The next halving course will be in 2024 so we see the model already going up”.
Bitcoin valuation in 2024
Notably, according to the model, Bitcoin should be trading in the $60,000 zone, which could lead to emotional reactions among investors. In the short term, the model projects that Bitcoin’s main support base towards $1 million might be the $100,000 level, which it deems achievable by 2024.
Interestingly, the $100,000 price projection aligns with a previous Finbold report in which Google’s generative artificial intelligence tool Bard offered the same prediction. Bard cited PlanB’s S2F model, which also places Bitcoin at $100,000 in 2024.
Simultaneously, technical indicators indicate that Bitcoin is mimicking previous pre-halving periods that preceded a massive bullish price rally for the maiden cryptocurrency. Generally, the halving event is considered a major milestone in Bitcoin’s path towards reaching the next all-time high price valuation.
Bitcoin price analysis
At the time of writing, Bitcoin was trading at $29,322, with minor gains of less than 0.2% in the last 24 hours, extending the asset’s stay below the $30,000 mark.
Elsewhere, Bitcoin’s technical analysis, as received from TradingView, is mainly bearish. According to a summary of the one-day gauges, Bitcoin is showing a ‘sell’ sentiment at 11, while moving averages are also indicating ‘sell’ at 9. Oscillators are recommending ‘neutral’ at 8.
Indeed, Bitcoin has remained under pressure, especially after failing to break above the $30,000 zone, a level considered crucial for a new all-time high.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
