Renowned analyst PlanB: Now is an excellent buying opportunity for Bitcoin, with the average price in this cycle reaching up to $500,000.

PlanB Reintroduces the S2F Model, Estimating an Average Price of $500,000 from 2024 to 2028, with a Reminder of Volatility Risks.

Quantitative analyst PlanB, creator of the Bitcoin prediction model “S2F (Stock-to-Flow Ratio),” gained fame for predicting that Bitcoin would reach $100,000 by the end of 2021. He was later criticized for inaccurate forecasts, but now he has once again shocked the market with a new Bitcoin price outlook, believing that during the current market cycle from 2024 to 2028, Bitcoin’s average price could reach $500,000.

This prediction comes from PlanB’s latest release of the S2F model. Although Bitcoin’s recent price has been highly volatile, currently hovering around $67,000, based on the historical range associated with the model, PlanB considers now an excellent time to buy Bitcoin.

Image Source: X/@100trillionUSD Bitcoin Price Outlook

What is the S2F Model?

The “S2F (Stock-to-Flow) Model” quantifies an asset’s scarcity by dividing its total supply (stock) by its annual production (flow), serving as a technical indicator to predict price trends. Since Bitcoin undergoes a halving every four years, its new supply is cut in half. According to the S2F model, when the supply growth rate continues to decline and scarcity increases, it will generate strong upward momentum for the price.

In the latest chart, the S2F forecast curve shows a significant jump after the 2024 halving, pointing toward a price range of about $500,000.

A Deep Dive into PlanB’s Latest Outlook, Summarized into 3 Core Points:

1. Historical predictions have been accurate multiple times: PlanB emphasizes that the S2F model has provided valuable price ranges in previous cycles. He notes that when he started buying Bitcoin in 2015 at around $400, and in 2019 when Bitcoin dropped below $4,000, the model predicted a potential rise to $55,000, which later proved correct as the price indeed surpassed that target.

2. Market is not overheated: From a technical perspective, PlanB believes Bitcoin is not yet in an overheated phase. The blue and green dots on the chart represent the Relative Strength Index (RSI), which measures whether an asset is overbought or oversold. Currently, the market remains in a relatively healthy zone. At around $67,000, the price may just be the starting point toward the average price of this cycle, still undervalued.

3. Investing involves risks, and models have limitations: However, PlanB admits that the S2F model is not infallible. In fact, it has faced criticism for focusing heavily on supply-side changes while neglecting demand-side market dynamics.

Based on these points, PlanB believes now is an excellent buying opportunity. He remains confident that Bitcoin’s value is significantly undervalued; however, he also warns investors that the crypto market is highly volatile. As Bitcoin approaches $500,000, it will likely experience sharp “deep retracements” similar to past cycles. Investors should buckle up and stay disciplined to navigate toward a bullish market safely.

• This article is reprinted with permission from: “Block Talk”
• Original title: “Is Now the Perfect Buying Point for Bitcoin? PlanB Updates S2F Model: Average Price in This Cycle Could Reach $500,000”
• Original author: Block Sister MEL