{"id":420790,"date":"2020-04-14T20:00:49","date_gmt":"2020-04-14T20:00:49","guid":{"rendered":"https:\/\/ktsl888.com\/?p=420790"},"modified":"2020-04-14T14:29:36","modified_gmt":"2020-04-14T14:29:36","slug":"bitcoin-shows-ideal-set-up-for-epic-rally-stock-to-flow-and-oversold-rsi","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/bitcoin-shows-ideal-set-up-for-epic-rally-stock-to-flow-and-oversold-rsi\/","title":{"rendered":"Bitcoin Shows Ideal Set Up For Epic Rally: Stock-to-Flow and Oversold RSI"},"content":{"rendered":"

Bitcoin price<\/a> is in recovery mode, after the first-ever cryptocurrency suffered a record-breaking collapse and fall to under $4,000, shocking the crypto community and the world at large.<\/p>\n

The selloff has led to extremely oversold conditions, according to the Relative Strength Index indicator. When combined with a Bitcoin valuation substantially below where the highly cited stock-to-flow model predicts, its the ideal setup for an epic rally, according to the theory’s creator.<\/p>\n

Understanding Bitcoin’s Stock-to-Flow Model<\/h2>\n

Because Bitcoin<\/a> is the first of its kind, and its use case has yet to be proven or implemented at speed or scale worthy of its potential, it is difficult to give the asset a proper valuation, and instead, price discovery is left to the constant tug of war between buyers and sellers.<\/p>\n

However, few analysts have attempted to perform fundamental analysis on the crypto asset by looking at the asset’s hard-coded digital scarcity, rather than financial figures and manufacturing reports common across stocks.<\/p>\n

Related Reading | Bitcoin Price Weekly Closes As Shooting Star Doji, Epic Plunge May Follow\u00a0<\/a><\/strong><\/em><\/p>\n

One such model exists, called the stock-to-flow model<\/a>, and it’s among the most popular and highly cited across the industry, even being the focus of discussion on episodes of CNBC’s Squawk Box.<\/p>\n

The stock-to-flow model suggests that due to the upcoming halving that sees the BTC reward miners receive for validating each Bitcoin block slashed in half, it should immediately cause the fair price of Bitcoin<\/a> to rise exponentially due to the rise in relative scarcity.<\/p>\n

Crypto Meme: Can Oversold RSI Ahead of Halving Could Lead to an Epic Rally<\/h2>\n

However, Bitcoin<\/a>‘s halving thus far has been nothing but a “meme” at which the crypto community can poke fun of. Jokes about how the halving has done nothing but cut the price of the asset in half, rather than inciting a new bull run, are commonplace.<\/p>\n

But when the stock-to-flow model is combined with an oversold Relative Strength Index due to Bitcoin’s record-breaking collapse last month due to the coronavirus chaos, it would be the perfect setup for an epic rally.<\/p>\n

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#Bitcoin<\/a> Stock-to-Flow (S2F) & Relative Strength Index (RSI) .. great setup: halving in 28 days and oversold pic.twitter.com\/mRg6RORIza<\/a><\/p>\n

— PlanB (@100trillionUSD) April 14, 2020<\/a><\/p><\/blockquote>\n