Bitcoin (BTC) could rise again if a classic price pattern repeats its historical behavior. Buyers, on the other hand, still support the cryptocurrency.
Analist William Clemente, In his post of August 3 He suggested that BTC/USD has reached the bounce zone in the stock flow pattern.
Although Bitcoin is trading well below the level predicted by the model in the daily framework, this negative signal may turn in its favor.
The divergence from the stock-to-flow model has risen to a level that has been seen five times in Bitcoin history.
Bitcoin experienced a serious spike after reaching the lower divergence limit on each of these divergences.
While PlanB, the creator of the stock-to-flow model, is worried about the recent drop in BTC price, he thinks the coin will close the year at at least 135,000 dollars.
Over-the-counter buyers attack BTC
On the other hand, high volume activity by investors may be helping the “flow” element in the stock-flow model’s bullish anticipation.
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According to data from on-chain analytics resource CryptoQuant, an undetected market power is buying massive amounts of BTC over-the-counter.
Ki Young Ju, CEO of CryptoQuant, said, “If big names announce that they’re buying BTC, the bears may be in trouble. I’m not sure about the short-term price performance” he stated.