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Bitcoin Will be Scarcer Than Gold After Halving, $500K BTC Price Predicted

Over the weekend, Bitcoin technical analyst and stock-to-flow model creator “PlanB” said that after the halving, “Bitcoin will be scarcer than gold and real estate.”

However, he added that he wouldn’t be surprised if Bitcoin’s market capitalization, currently less than $1 trillion, stayed below gold’s, which is currently less than $10 trillion.

With some basic math and assumptions, this implies a BTC price greater than $500,000 by dividing a $10 trillion market cap by 20 million coins.

Bitcoin May Never Drop Below $31K Again

However, halving gains are usually recognized a year after the event, so there is unlikely to be a massive price pump after April if history rhymes.

Additionally, for Bitcoin’s market capitalization to increase tenfold, it would require a massive influx of fresh capital, which doesn’t seem to be there at the moment, considering the current climate.

On Feb. 4, the analyst referenced his S2F model again, referring to the Bitcoin 200-week moving average, which is $31,000. Bitcoin has never dropped below the 200wma before, leading the analyst to conclude:

“So $31k might be the absolute floor, and Bitcoin might never see $31k ever again IMO.”

In the short-term, analyst “CryptoHamster” identified a bullish pennant chart pattern. He said that the breakout is threatening to be on the downside, but an upswing could move prices to $45,550.

Fellow analyst “Rekt Capital” also hinted at an upside move, stating:

“Bitcoin is on the cusp of invalidating its Bearish Divergence with a break of its RSI downtrend,”

BTC was trading down 0.5% on the day at $42,700 at the time of writing.

Elsewhere on Crypto Markets

Crypto markets have been flat over the past 24 hours, with total capitalization at $1.71 trillion during the Monday morning Asian trading session.

Bitcoin has fallen to around $43K and appears to be heading towards resistance at $42K. Meanwhile, Ethereum is down 0.4% on the day, dipping below $2,300.

Most of the altcoins are in the red, aside from Chainlink (LINK) and Tron (TRX), which have gained a couple of percent on the day.

The post Bitcoin Will be Scarcer Than Gold After Halving, $500K BTC Price Predicted appeared first on CryptoPotato.

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