PlanB said that an 80% correction in the value of Bitcoin is not yet out of the question. The analyst believes the price would fall by another 80% if the S2F values reached USD 100,000 and USD 288,000.
PlanB, the creator of the Stock-to-Flow model, recently predicted that Bitcoin would experience another 80% crash in the next crypto winter. During that period, the market of the pioneering cryptocurrency will cool down and stabilize.
The crypto winter started in early and mid-2018 after Bitcoin dropped below USD 20,000 and remained between USD 6,000 and USD 3,000. The price stagnated due to the lack of new capital, causing the rest of the cryptocurrencies to repeat the pattern.
Bitcoin to Experience Another 80% Crash Next Crypto Winter
Curiously, many users follow the long-term predictions about Bitcoin (BTC) by renowned analysts like PlanB on their social networks. He highlighted some signs that indicate that Bitcoin will eventually enter the bearish territory.
He said he is among the few who think there will be a bearish market, as has happened a couple of times before.
He added that many people say the four-year cycle has ended, and there will no longer be volatility and deep bearish markets like these.
He thinks the prices of options suggest there will be bearish markets, as they are trading at 100% volatility. When the Chinese government banned Bitcoin mining, its value dropped by 50% or more. For that reason, the analyst considers that an 80% correction is not yet out of the question.
PlanB Predicts Bitcoin Prices Based on the S2F and S2FX Models
PlanB predicted that the next drop might occur after Bitcoin reaches the price targets of its S2F and S2FX models.
He believes the price must rise significantly to bring the S2F values to USD 100,000 and USD 288,000. However, he said that it would fall by 80% again due, in part, to the greed and fear in investors.
If the price reaches the USD 100,000 level, people will go into FOMO (fear of missing out) and increase. After that, there might be another ban from a leading country or an announcement by important regulators, among others. The analyst added that there will always be fear and greed concerning Bitcoin.
PlanB Considers that a Price of USD 100,000 Is Difficult to Reach
A few days before the end of 2021, the outlook for the prices of Bitcoin does not bring peace of mind to investors. Some prominent figures have predicted that 2022 may be a crypto winter.
The CEO of cryptocurrency exchange Kraken, Jesse Powell, said that a crypto winter might start.
Renowned cryptocurrency analyst, Michaël van de Poppe, considers that history repeats itself, and the same as previous years will happen. He foresees the market will bottom out in the remainder of December and early January.
PlanB finds the prediction of USD 100,000 objectively hard to fulfill this year. However, he agrees with several experts that suggest the price of Bitcoin will reach and exceed USD 100,000 within the coming year.
For instance, the CEO of CoinList, Graham Jenkin, forecast a price of USD 100,000 for February 2022. However, it is a matter of time before the pioneering cryptocurrency reaches and exceeds its previous all-time highs again.
By Alexander Salazar
