2023-10-11 18:44 |
Rekt Capital recently released an insightful video analyzing Bitcoin’s price relative to the popular Stock to Flow (S2F) model. The video explores how Bitcoin’s current status compares historically based on the S2F metric.
The S2F model predicts Bitcoin’s price by evaluating its scarcity. Specifically, it looks at the ratio between Bitcoin’s current supply and its annual production.
Rekt Capital examines crucial updates regarding Bitcoin’s alignment with the S2F line. This provides viewers a comprehensive perspective on Bitcoin’s position in the ongoing market cycle.
Notable points from the video include:
The S2F model uses colored phases indicating Bitcoin’s proximity to halving events. Blue means close to a halving, while red, orange, and yellow signal the periods after. Green indicates maximum financial risk. Historically, the blue phase has been an opportunity for bargain buying, offering investors the most financial upside. Major deviations below the S2F line have been optimal buying chances. The model variance is another important indicator. Past lows in variance marked excellent buying moments. Bitcoin has now broken out from the bear market bottom based on rising lows in variance. New lows could signal more bargain buying. The S2F line suggests Bitcoin will reach around $100k soon after the next halving. However, Rekt Capital speculates Bitcoin may not revisit the line this cycle due to the high price. It seems set to track below the S2F line instead.Rekt Capital stresses Bitcoin is currently in a bargain buying area per the S2F model. This indicates we could see significant appreciation ahead. The video argues Bitcoin remains in a confirmed bull market with potential for substantial gains considering historical S2F performance.
Rekt Capital welcomes feedback and discussion of the insights. He also offers online courses and newsletters focused on crypto analysis, investing, and risk management. Links are in the video description.
In summary, Rekt Capital provides a data-driven S2F analysis suggesting Bitcoin is still early in its bullish run. However, investors should still research diligently and weigh various factors before deciding.
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