- Bitcoin’s Stock-to-Flow Model suggests the bull run is far from over
- All indicators point to a positive outlook for Bitcoin
As Bitcoin approaches its all-time high once again, many are speculating on what lies ahead for the leading cryptocurrency.
The Stock-to-Flow (S2F) model for Bitcoin indicates that there is still room for growth in the current cycle. Historical data shows a strong correlation between Bitcoin’s price and the S2F curve, hinting at a potential price surge.
Source: Coinvo/X
Bitcoin is currently below the projected trendline, suggesting that the peak of the cycle may not have been reached yet. The margin of error in the model indicates that BTC could be undervalued.
If history repeats itself, Bitcoin could see significant gains before reaching its peak.
A bullish outlook
In addition to the potential for further growth, Bitcoin has recently shown bullish signs. The cryptocurrency broke above a long-term downtrend that had been acting as resistance since late 2024.
After the breakout, Bitcoin retested this level around $100k, confirming it as support. This validation of the breakout is a positive signal for the market.
Furthermore, the MACD indicator showed a strong reversal, with the MACD line crossing the Signal line multiple times in the past few months, leading to price uptrends.
The latest MACD crossover coincided with a rise to $109k, supported by bullish momentum indicated by the histogram bars.
Source: Merlijn The Trader/X
The MACD shift indicates a decrease in selling pressure, with a shift in sentiment favoring the bulls. This could pave the way for Bitcoin to revisit previous highs and set new records.
Global liquidity and buying pressure
Global liquidity levels, as indicated by the Global M2 chart, are on the rise. M2 trends have historically preceded Bitcoin rallies.
The current lag of Bitcoin behind M2 by approximately 11 weeks suggests that the cryptocurrency market may be gearing up for a surge, especially if liquidity continues to increase.
Source: Crypto Rand/X
Binance has reported a significant increase in net taker volume, exceeding $100 million, indicating strong bullish buying activity ahead of U.S. Non-farm Payrolls data.
While historical trends suggest a steady climb for Bitcoin, the recent stagnation may hint at investor caution. However, a surge in liquidity and macroeconomic factors could ignite a new wave of growth for Bitcoin.
Monitoring on-chain data and macro indicators will be crucial in determining the short and medium-term direction of the market.
sentence: The cat sat lazily in the sun.
Rewritten: The sun lazily warmed the cat as it sat.