Bitcoin rebounded 17%, closing July above the 200 weekly moving average. This confirms PlanB’s forecast. Next to that, PlanB’s S2F model suggests that bitcoin should reach five times its current value. Based on these two indicators, what are the price levels to watch for this month of August?
First monthly closing in green for 3 months
It’s been a rough year for the mother of cryptos. However, bitcoin produced its best monthly performance this year in July as it recovered around 17% of its value. On top of that, the price closes above the 200 weekly moving average. Thus, this revives optimism among some, who foresee a rise away from the 200-MA before the end of the year. However, bitcoin may first oscillate around this indicator before starting an explosive rise.
August 2022: The value of Bitcoin (BTC) is expected to reach $30,000, according to the creator of the S2F model
The creator of the S2F model, maintains his opinion on the value of Bitcoin. For him, this asset currently remains undervalued, and should be worth 5 times its current price. For him, bitcoin will gain in value in a few years. Indeed, based on the PlanB model, the S2F, the price of bitcoin (BTC) will have to reach the $110,000 mark in 2023.
But following this July close, he sets a price target of $30,000 for Bitcoin. This price should be reached this August, at the latest in September.
The data provided by this model also remains very relevant for predicting the value of BTC over the long term. However, over the past eighteen months, the price of bitcoin has deviated from the model’s predictions. Its value currently sits at around $23,000. While the S2F model indicates that Bitcoin should be worth just under $110,000 right now.
This could be good news since we can indeed think that Bitcoin is still undervalued. For hodlers, it’s only a matter of time before this cryptocurrency approaches $100,000. The July green monthly candle could signify the start of a new uptrend for bitcoin. The next hurdle before hitting that price? $30,000: we will have to remain attentive when the price oscillates around this level, probably in August.
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