HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin Shows Ideal Set Up For Epic Rally: Stock-to-Flow and Oversold RSI

Bitcoin 2020/04/14 22:00 by Tony Spilotro
Bitcoin price is in recovery mode, after the first-ever cryptocurrency suffered a record-breaking collapse and fall to under $4,000, shocking the crypto community and the world at large. The selloff has led to extremely oversold conditions, according to the Relative Strength Index indicator. When combined with a Bitcoin valuation substantially below where the highly cited stock-to-flow model predicts, its the ideal setup for an epic rally, according to the theory’s creator. Understanding Bitcoin’s Stock-to-Flow Model Because Bitcoin is the first of its kind, and its use case has yet to be proven or implemented at speed or scale worthy of its potential, it is difficult to give the asset a proper valuation, and instead, price discovery is left to the constant tug of war between buyers and sellers. However, few analysts have attempted to perform fundamental analysis on the crypto asset by looking at the asset’s hard-coded digital scarcity, rather than financial figures and manufacturing reports common across stocks. Related Reading | Bitcoin Price Weekly Closes As Shooting Star Doji, Epic Plunge May Follow  One such model exists, called the stock-to-flow model, and it’s among the most popular and highly cited across the industry, even being the focus of discussion on episodes of CNBC’s Squawk Box. The stock-to-flow model suggests that due to the upcoming halving that sees the BTC reward miners receive for validating each Bitcoin block slashed in half, it should immediately cause the fair price of Bitcoin to rise exponentially due to the rise in relative scarcity. Crypto Meme: Can Oversold RSI Ahead of Halving Could Lead to an Epic Rally However, Bitcoin‘s halving thus far has been nothing but a “meme” at which the crypto community can poke fun of. Jokes about how the halving has done nothing but cut the price of the asset in half, rather than inciting a new bull run, are commonplace. But when the stock-to-flow model is combined with an oversold Relative Strength Index due to Bitcoin’s record-breaking collapse last month due to the coronavirus chaos, it would be the perfect setup for an epic rally. #Bitcoin Stock-to-Flow (S2F) & Relative Strength Index (RSI) .. great setup: halving in 28 days and oversold pic.twitter.com/mRg6RORIza — PlanB (@100trillionUSD) April 14, 2020 When the RSI reaches oversold conditions, assets typically bounce or reverse. A touch of the lowest point of the RSI also often signals a bottom is in. Related Reading | Crypto Market Cycle: Data Shows Bitcoin On Pace For Post-Halving Bull Run  With a bottom potentially behind us, RSI reaching oversold levels, and a grossly undervalued Bitcoin according to the stock-to-flow model, the recipe for the greatest bull run ever is here. Especially when combining the coming hyperinflation expected due to the recession and the government’s response to stimulate growth devaluing fiat currencies, Bitcoin could reach valuations of $100,000 or more, as many analysts are predicting. Featured image from Pixabay  

1 Like(s)



You should also read...

Bitcoin 30/04/20 22:00 by Tony Spilotro
Bitcoin RSI Hits Highest Since June 2019 Top, May Signal Bull Market
The latest rally in Bitcoin has caused the Relative Strength Index to reach shocking highs. Such a reading would typically indicate a pullback is due, however, it can also be a signal that the bull ma...
Read More
Bitcoin 06/05/20 18:00 by Tony Spilotro
Bitcoin RSI Reaches Full Power, Highest Overbought Conditions Since June 2019
The most recent push in Bitcoin price by bulls has resulted in the Relative Strength Index, or RSI, reaching full power. The commonly used trend-strength measuring tool hasn’t hit such overbough...
Read More
Altcoins 14/08/20 22:00 by Tony Spilotro
Indicator Shows XRP Has Most Explosive Momentum Since 2017 Bubble
XRP’s recent rally has taken a pause, leaving crypto investors scratching their heads wondering which way the altcoin will turn next. Will it fall deeper into the throes of the bear market, or w...
Read More
Bitcoin 19/09/20 19:00 by Tony Spilotro
Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto
Bitcoin price recently plunged from over $12,000 at the 2020 high to back under $10,000. But after seven straight days of retesting resistance turned support, the crypto asset is already back at $11,0...
Read More
Bitcoin 01/07/21 23:31 by Tony Spilotro
Bull Signal From Bitcoin Bottom Is Best Hope Yet For Continuation
Bitcoin price continues to struggle to regain any type of bullish momentum, and keeps grinding at repeatedly tested support. In the past, when this happens, the support ultimately breaks down and a ca...
Read More