Crypto Industry News:
The S2F model, popularized by an anonymous analyst, predicts the price of bitcoin based on a shortage of digital coins. It is usually used to forecast the prices of goods such as gold and silver, whose decreasing supply determines the price. PlanB concluded that the S2F model can also be applied to limited supply assets, such as Bitcoin. S2F includes Bitcoin halving and predicts that the price of a digital coin can reach as much as USD 288,000 by 2024. While Bitcoin maximal's look at this model with hope, co-founder Ethereum is not convinced of the legitimacy of its use.
Vitalik Buterin stated that the very method of configuring the model prevents its overthrow. He explained that if the price of bitcoin peaked before halving, the model proved to be correct because it suggests that the price has risen in anticipation of this event. Buterin noted, however, that this thinking applies to every other event on the BTC bitcoin timeline when the cryptocurrency price reaches its peak:
"The" halvings cause BTC price rises "theory is unfalsifiable: was the peak before the halving? Then it" rose in anticipation of the halving "During?" Because of the halving "After?" Because of ... ". The last $ 20k peak was near the halfway point between the 2016 and 2020 halvings "- wrote Buterin on Twitter.
Later in the thread Vitalik Buterin confirmed his opinion. He said he completely disagrees with the S2F model.
Some Twitter users have noticed that the stock-to-flow model alone does not mean that the peak is a direct consequence of halving the prize. They claim that each period between halving displays different orders of magnitude due to changes in supply.
Technical Market Outlook:
The ETH/USD pair has failed to rally higher towards $250 and is currently testing the lower main channel boundary from below. Any violation of this line will likely make the level of $217.65 a temporary low for the market. The next technical support is seen at the level of $217.65 and $209.89. The nearest technical resistance is still seen at the level of $235.42. The larger time frame trend remains up.
Weekly Pivot Points:
WR3 - $269.64
WR2 - $259.20
WR1 - $244.61
Weekly Pivot - $234.84
WS1 - $219.79
WS2 - $210.55
WS3 - $195.77
Trading Recommendations:
The larger time frame trend on Ethereum remains down and as long as the level of $288 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The next key technical support is seen at the level of $174.82.
