Popular Bitcoin model Stock-to-Flow (S2F) shows BTC has touched a trend line that has historically sent the crypto flying. Bitcoin Touches S2F Deflection Trend Line As pointed out by a crypto analyst on Twitter, BTC seems to have just touched a lower S2F deflection trend line. The S2F or Stock-to-flow Bitcoin model helps in predicting the price of BTC. The method has proved to be remarkably accurate so far, besides a few points of deviation. S2F model is based on the ratio between the stock (supply) and the flow (annual production). The model can be applied to any asset, not just BTC. A higher value of the indicator means the commodity is more scarce. Here is how the latest S2F chart for Bitcoin looks like: The BTC S2F chart seems have a negative deflection at the moment | Source: buybitcoinworldwide.com As the graph shows, despite some deflections during certain periods, the model still seems to be close. Currently, the chart shows a negative deflection. Now, there is another, related indicator of relevance here. The Stock-to-Flow deflection. This metric highlights whether an asset is undervalued or otherwise in terms of its S2F value. Related Reading | On-Chain Expert Predicts $162K Bitcoin Peak This Cycle The BTC S2F deflection is calculated by taking the ratio between the current price and the S2F value. When the ratio is more than 1, it means BTC is overvalued, while if it’s less than 1, the crypto is said...
