Bitcoin has managed to hold on to its gains over the weekend as it trades in a range bound channel in the mid-$9,000 price zone. Targets for long-term models such as stock-to-flow are being reached as the bullish momentum grows.
BTC hit a three-month high a few hours ago when prices touched $9,630. The digital asset has been consolidating for almost a week now above $9,000 and the longer it does so the greater the chances of another move higher.
Bitcoin Stock-to-Flow On Track
The stock-to-flow (S2F) model examines the relationship between the production of supply and the current stock available. This model has been examined a great deal by analyst ‘PlanB’ as a way of predicting prices based on halving events that affect supply and demand.
With just three months left until Bitcoin’s third halving, BTC prices are now above the S2F model as observed by the analyst.
Using this model, PlanB predicts a rise to around $80-$100k in the months following the halving. Previous halvings in 2012 and 2016 saw huge rallies in the years that followed. and many are expecting that 2021 could be even bigger for Bitcoin than this year.
A Golden Cross
There are other bullish signals in addition to the S2F model and yesterday’s golden cross is one of them. This long-term trend change indicator occurs when a faster moving average crosses above a slower one. This has just occurred on the daily chart for two of the most commonly observed moving averages, the 50-day, and the 200-day.
The last time this occurred was in April of 2019 when BTC was priced at around $4,500. Following a golden cross signal, prices surged to a yearly high of $13,800 in June.
This has also been observed by analysts using different moving averages on the weekly time frame:
BTC is currently at resistance trading at levels last seen in October of 2019 and needs to break higher this week to prevent a large pullback.
The next resistance level is over $10,000 which is also a huge psychological barrier, and the technical indicators suggest that it’s only a matter of time before this threshold is crossed again.