Will the Bitcoin price continue to fall? In the recent bloodbath in the crypto market, the price of Bitcoin missed the last 2022 low support of $18,400 to $18,200. The loss of this crucial support indicates that the price of BTC should continue to decline now to return to the low level. However, the Stock to Flow (S2F) model of plan B and the RSI trend suggest that the price of Bitcoin will recover in 2023.
- Technical indicators suggest Bitcoin price is oversold
- An upside break of the weekly EMA 20 slope should signal the first recovery.
- The intraday trading value of Bitcoin is $18.8 billion, showing a decrease of 4.32%
Bitcoin price tried to hold above $18,400-$18,200 support for almost five months. However, with the recent incident of the crypto exchange FTX falling, the market experienced a large sell-off, leading to an increase in the price of BTC from the aforementioned support.
In addition, the weekly candle closes below the support of $18,200 indicating that the traders are confident that they will reach the lower level. Therefore, if the price shows durability close to its current value, the test break will send Bitcoin down 23.4% to $12,500. However, a clear divergence in the slope of the weekly RSI near the oversold zone indicates that the selling activity has extended too far. This difference indicates that the coin may soon rally to support the price.
The Stock to Flow (S2F) model shows a significant increase in bitcoin price in 2023
An influential Chinese crypto journalist, Colin Wu, recently pointed out the large volatility of the Bitcoin price through the S2F model forecast and suggested that the price of the coin will be $78,280 on December 31, 2022.
The basic idea of the model suggests that as the supply of assets decreases, its market value increases. Although such a large growth in a short period of time seems impossible, the price of Bitcoin has followed the S2F situation before. Additionally, in 2011 and early 2014, the pattern showed similar upswings, which eventually led to a decline in prices and a decline in Stock/Flow. Therefore, it can be said that in 2023 the price of Bitcoin will increase and reduce the difference in the slope of Stock / Flow.