The Bitcoin share price (BTC) is facing a decisive mark. Whether the USD 5,000 mark will establish itself as a resistance depends on several factors. Bitcoin bulls like Tone Vays are not letting themselves be thrown off course by the recent crash. Even the stock-to-flow model, which predicts a six-digit Bitcoin price, is still valid.
Since the Bitcoin exchange rate (BTC) took a nosedive in recent weeks, it has repeatedly broken through the 5,000 US dollar mark. The market turbulence, which has long since broken through the crypto market from the traditional markets, is keeping investors in suspense. Now the question arises: Is now the right time to buy Bitcoin?
Bitcoin price: Bull trend in sight?
Let us dare to take a look at the fraction of the unswerving Bitcoin bulls, represented by the supporters of the stock-to-flow model. The stock-to-flow model, originally used for precious metals such as gold, is intended to determine the rarity of an asset. According to the stock-to-flow model, the Bitcoin price is expected to reach the six-digit range in the medium term; the next Bitcoin Halving is expected to be an important catalyst for this.
Was that already the low for the year?
Tone Vays has already guessed the fall to the 4,000 US dollars. As he reveals in an interview with Tech with Catalina, he was not convinced by the Bitcoin price last year. In his opinion he was overvalued.
I was worried that the slightest sneeze could cause Bitcoin to collapse rather badly. And that's what happened.
Even if "slightest sneeze" seems immeasurably understated in this context, Vays was obviously right. Nevertheless, Vays continues, any other trigger would have been enough to push the Bitcoin price down like this.
In his opinion, the Bitcoin ecosystem is still too unstable to guarantee sustainable prices. In the current situation it is important to keep a close eye on the stock market. If the stock market starts to recover, the Bitcoin price and the crypto market can be expected to recover. However, if the situation here gets worse, the Bitcoin price could fall even further. However, he considers this unlikely.
Tone Vays also believes that 2020 is the best year to buy Bitcoin. He believes that the 3,800-US dollar mark marks the annual low. And if worse comes to worse: Bitcoin would not drop below $2,000 even after Vays.
However, it was not time for FOMO (Fear of Missing Out). According to Vays, the Bitcoin exchange rate could rise to a maximum of 10,000 US dollars this year. Only next year could the prices move to higher levels again. New all-time highs could not be reached until 2022. But for that Bitcoin must first establish itself; at the moment Bitcoin has "no place in the global financial system".