Bitcoin is nearing the $69,000 level, suggesting potential for a sustained rally. The Bitcoin Stock-to-Flow (S2F) model, referenced by analyst Plan B, indicates a forthcoming phase transition, supporting a price above $100,000.
The S2F model, adapted from commodities like gold, assesses an asset’s supply against new market entrants. For Bitcoin, this considers its constant supply of 21 million BTC alongside halving events that cut new supply every four years, emphasizing scarcity.
Historically, after halving, Bitcoin's price increases consistently, as observed in the 2020 halving, which boosted BTC past $10,000. Following the April 2024 halving, Bitcoin's price appears ready to transition above $100,000 in response to supply-demand dynamics.
Once Bitcoin breaches $100,000, this level acts as a support, further elevating its price in subsequent months. Past phase transitions launched peaks before coming halving events, suggesting possible prices reaching just below $1,000,000 before 2028's next halving.
Currently, Bitcoin is at $68,340, approaching the $69,000 mark, signaling the onset of the anticipated phase shift.
