PlanB, the acclaimed creator of the controversial stock flow (S2F) model, estimates that Bitcoin (BTC) will reach $ 100,000 when the price rises to its annual high. The positive mood coincides with a shift in speed from alternative digital currencies or alternative currencies to BTC.
“I can not make a plan for you right now (at sea), but S2F is just on the right track.”
Meanwhile, the bitcoin price is up 17% this week as it broke the main trend line in three years. As Cointelegraph reports, it looks like traders expect BTC to test higher levels of resistance in the near future.
Data shows that it may be time for Bitcoin
Altcoin has been particularly down for the last 72 hours as the price of Bitcoin began to rise. Ethereum (ETH) has moved with BTC throughout the rally, but has fallen with BTC in the last two days.
In the short term, as Bitcoin sees growth in returns from altcoins, some investors expect BTC to surpass altcoins. Kelvin Ko, co-founder of the Asian Spartan group, said:
“If BTC overcomes the $ 11,400 resistance, we will exceed $ 12,000. Always. In the short term, the wind will come out of shock again. ”
The pattern of Bitcoin rally after a strong altcoin season is not new. In previous sessions, cryptocurrency has seen its most acute bullish trend since the first acquisition of alternative currencies against BTC. This trend is achieved because investors are looking for safer alternatives such as BTC when the altcoin market heats up.
Lately, the fear of losing or FOMO for retail investors across DeFi has increased the value of small market codes. In the early days of the market frenzy, for example, DeFi COMP (Comp) experienced a big leap forward. Then I followed small icons including Yearn Finance (YFI), Synthetix Network (SNX) and Aave (LEND).
Finally, as small tokens grew five to ten times, investors began to make a profit. The sudden decline in DeFi symbols coincided with the rise in BTC as momentum returned to Bitcoin.
Traders say the trend is still bullish
Skew's data shows that tens of millions of dollars in short contracts are still being settled. This indicates that a relatively large number of investors are investing in BTC in the short term.
Digital currency trader Kantering Clark said that although he understands why the shorts are so strong, the trend is very strong. He said:
“It's good to look at agreements from an R: R perspective, but it's better to understand the context. After such a big context change, you can assume that the chances of solving your short problems are lower. Strength efforts should always be.”
For some traders, selling against bitcoins may be attractive as BTC declined sharply last week, testing key resistance levels.
A 17% rise in six days – even during a beef market – makes a big difference, even for bitcoin. But when the BTC trend is very bullish, the short pressure can add more rocket fuel.
For example, over $ 23 million in shorts have been cleared in the last 12 hours when the price reached $ 11,750. During a strong price development, shorts can indirectly stimulate higher growth.