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bitcoin price rainbow chart
Nexo

Most Important Chart Ever? Bitcoin S2F Combined With Reddit Rainbow Chart Emerges

Tony Spilotro by Tony Spilotro
12 months ago
in Bitcoin, Bitcoin Price
0

With Bitcoin’s halving less than one month away, investors are losing faith in the stock-to-flow model they’ve long subscribed to that suggests that the asset’s price should be pacing closer to $55,000. Recently, however, a long-time chart shared amongst the Reddit Bitcoin Market’s community has reemerged and given investors hope.

Now, the two charts have been combined for what may be the most important Bitcoin price chart crypto investors ever lay their eyes upon.

Cryptocurrency Faithfuls Lose Hope in Aging Stock-to-Flow Model

Bitcoin price is currently trading at $6,800, up over $3,000 from the low set last month during the extreme panic selloff that took down stocks, gold, and nearly every other asset under the sun.

With a black swan event like the coronavirus currently sending the globe into an economic downward spiral, cryptocurrencies like Bitcoin are facing their most dangerous situation yet.

RELATED READING | OMINOUS BITCOIN PRICE FRACTAL REVEALS REPEAT OF RECORD SELLOFF

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These conditions severely tarnish the previously confident view that Bitcoin’s upcoming halving would be a bullish kick start to the next major rally toward a new all-time high, due to the effect the pre-coded event has on supply and demand.

One of the asset’s most widely discussed and cited valuation models, the stock-to-flow model popularized by PlanB, has suddenly become the subject of ridicule, as the first-ever cryptocurrency trades nowhere close to the $55,000 by May 2020 that the model had been predicting.

Instead, Bitcoin price is barely over 10% of that lofty price prediction.

bitcoin price reddit rainbow chart

Source: BlockchainCenter.net

Re-Modeling Bitcoin Price Trajectory By Combining S2F With Reddit Rainbow Chart

Bitcoin’s halving does indeed reduce the supply BTC miners receive for validating the blockchain. The idea is that with the sudden drop in supply, the cost of production doubles overnight, prompting miners to cease selling at a loss. The lack of supply entering the market causes demand to outweigh what’s available to be bought, causing prices to spike.

But once Bitcoin price plummeted to $3,800 last month, the hope for that scenario went out the window.

However, an old chart circulating around the r/BitcoinMarkets sub-Reddit since 2014 has reemerged and could bring some much-needed hope to the crypto community. The chart is called the Reddit Rainbow chart, and it has recently been used to challenge the stock-to-flow model as the ultimate tool for tracking Bitcoin’s price.

buy bitcoin 🌈

(h/t @ercwl) pic.twitter.com/sOIH2beGVW

— PlanB (@100trillionUSD) April 20, 2020

The chart simply uses colored rainbow ranges to track Bitcoin’s peaks and troughs throughout the years. The chart caught on with such traction, that the creator of the stock-to-flow model has combined the charts to form the ultimate in crypto chart collaborations.

RELATED READING | DIAMONDS ARE FOREVER: BITCOIN AND XRP JUST FORMED AN ULTRA-RARE BOTTOM PATTERN

The new, stock-to-flow rainbow chart uses the colored bands to indicate support or resistance on the stock-to-flow model’s expected trajectory for Bitcoin’s price based on the asset’s scarcity.

Will the new stock-to-flow rainbow chart accurately predict what’s next for Bitcoin price?

Featured image from Pixabay
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Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a digital media executive and global remote work leader with a decade of content experience and excellent. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

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