“The drop in bitcoin price to $ 47,000 relieved the market”

Although traders who took long positions on the Bitcoin (BTC) price were having bad days, an analyst said that the 22 percent drop in the week “provided comfort”.

PlanB, developer of the Stock to Flow (S2F) model, said that the BTC price fell below $ 48,000, below his expectations. tell me well, it is not of any concern.

The claim that it will return to where it should be

Bitcoin price is no longer ahead of the S2F model, which is considered one of the most accurate predictive tools. PlanB suggested that the BTC price, which went above the level it had expected, reached an unreal price and started to worry.

“I was somewhat relieved when the BTC price dropped below the S2F model,” wrote “The Bitcoin Standard” author, Saifedean Ammous, who described his predictions as “surprising.”

“For a moment I thought that people were moving ahead of the model and the super cycle started. Now we’re back to normal… it works like a clock.”

Progress of the stock flow model with the BTC / USD pair. Source: PlanB / Twitter

As reported by Cointelegraph, the model is available in two versions: flow-to-stock (S2F) and cross-asset-to-stock (S2FX). Both models suggest that the BTC / USD pair will average between 100,000 and 288,000 from today to 2024.

PlanB previously said that Bitcoin will not stop at $ 100,000 this year, but will rise further.

Podcast host Stephan Livera said, “Bitcoins usually expect a big rise in the bull market and a big drop in the bear market.

“I don’t think we’re in super loop this time.”

Emotional instability persists

Various factors have been put forward that are driving the recent price declines. These include the negative Coinbase premium as well as CME futures trading below the spot price.

When the Coinbase spot price is different from that on the Binance exchange, it can indicate a bullish.

The turning negative of this difference coincided with a series of large sell orders on Coinbase, each of which resulted in a short drop in the order book spot price.

Coinbase order book with sales and price drops. Source: Josh Olszewicz / Twitter

The Crypto Fear and Ambition Index is in the “greed” zone, indicating that irrational sentiment will leave the market.

While Bitcoin was hovering near its all-time high of $ 65,000, mass liquidation was seen in long positions during the initial decline.

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