Although Bitcoin (BTC) has had its worst monthly close in 10 years, it could still break records this year, according to analyst PlanB.
The analyst, creator of the BTC stock flow model, in his post on Tuesday He said that Bitcoin was acting like in the 2013 bull market.
Stock flow model still works
After Bitcoin slumped to $30,000 and tested this level several times, investors began to worry that the coin could drop to $20,000 or even lower.
This marks the first time that Bitcoin has retraced from the peak of the previous bull market (currently the 2017 bull market).
PlanB, on the other hand, considers such a situation unlikely. Moreover, the current price action of the coin is also not unprecedented, reminiscent of the 2013 bull market.
Sharing the chart of the stock-flow cross-asset model (S2FX), the analyst drew attention to the similarity between the 2021 and 2013 bull markets.
PlanB, “New point: We closed the month of May at $37,341, ie 35 percent depreciation. We knew that Bitcoin would not rise in a straight line, and drops of 35 percent can also be seen in bull markets,” he explained.
“It’s starting to look more and more like 2013. The S2FX model is also still working.”
Possible record breaking
The S2FX model predicts that the average price of Bitcoin in the current halving cycle between 2020-2024 will be $288,000.
The last fix, on the other hand, raised questions about whether the model, which PlanB constantly emphasizes is not guaranteed, is still valid.
Still, Bitcoin’s performance in the 2013 bull market remains a strong argument in explaining its performance this year.
The accumulation activities of long-term savers may result in a “double peak” this year, as in 2013.