Despite a slight dip, Bitcoin price is still expected to surpass $10,000 by the next block halving, according to Stock-to-Flow models.
As originally posted by the Twitter user planB, Bitcoin remains on course to exceed $10,000 and perhaps even $100,000 according to trend-following macroeconomic models.
The significance of stock-to-flow
The graph above shows a correlation between bitcoin reward halving and the price of bitcoin, mapped by year and counting down until the next halvening event that will occur May 2020. Most importantly, the price appears to follow the Stock-to-flow macroeconomic model.
The SF model displays a price uptrend. Notably, as the halvening is expected to reduce sell pressure on the supply side. A lack of interest from sellers could help the price climb upwards from its current levels.
However, these kinds of rallies are stymied by a lack of selling pressure rather than interest from buyers, and can quickly climb into overbought levels followed by a sharp downside correction.