{"id":140803,"date":"2020-12-24T11:01:55","date_gmt":"2020-12-24T08:01:55","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-the-most-popular-bitcoin-price-prediction-models-fared-in-2020\/"},"modified":"2020-12-24T11:01:55","modified_gmt":"2020-12-24T08:01:55","slug":"how-the-most-popular-bitcoin-price-prediction-models-fared-in-2020","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-the-most-popular-bitcoin-price-prediction-models-fared-in-2020\/","title":{"rendered":"# How the most popular Bitcoin price prediction models fared in 2020"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d68231f38e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d68231f38e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-the-most-popular-bitcoin-price-prediction-models-fared-in-2020\/#Stock-to-Flow\" >Stock-to-Flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-the-most-popular-bitcoin-price-prediction-models-fared-in-2020\/#Elliott_Wave_Theory\" >Elliott Wave Theory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-the-most-popular-bitcoin-price-prediction-models-fared-in-2020\/#Rainbow_Chart\" >Rainbow Chart<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># How the most popular Bitcoin price prediction models fared in 2020 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>From $3,600 lows to all-time highs of just above $24,000, 2020 was the year that Bitcoin (BTC) surprised analysts like never before.<\/p>\n<p>With predicting its next move becoming ever more difficult, there\u2019s likewise never been more demand for an accurate Bitcoin price model.<\/p>\n<p>Cointelegraph takes a look at how the best in the business fared this year, and what\u2019s worth following as 2021 gets underway \u2014 possibly with $20,000 as a starting point.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stock-to-Flow\"><\/span>Stock-to-Flow<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>No matter which way you look at it, 2020 was the year in which the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/digitalik.net\/btc\/\">stock-to-flow<\/a> Bitcoin price model came of age. <\/p>\n<p>Already one of the best known in the industry, stock-to-flow\u2019s various incarnations tracked BTC\/USD as it ranged to its dramatic yearly lows and shot back up again. <\/p>\n<p>Best of all, Bitcoin\u2019s entire program of behavior still fell within the models\u2019 demands \u2014 as of December 19, it is following stock-to-flow to the letter (or digit).<\/p>\n<p>The stock-to-flow ratio is based on the amount of an asset already in existence (the stock) versus the amount being added via creation (the flow). In Bitcoin\u2019s case, this ratio is intrinsically tied to block subsidy halvings \u2014 these reduce the flow by 50% roughly every four years.<\/p>\n<p>As such, with each halving, Bitcoin\u2019s ratio becomes higher, and there is currently nothing in the way of it attaining and preserving the highest ratio of any known asset.<\/p>\n<p>In terms of price, several variants of stock-to-flow-based prediction have been created by PlanB, the anonymous analyst who has become a household name among Bitcoiners.<\/p>\n<p>Each model calls for different price targets to hit during the current halving cycle through 2024. The most conservative is $100,000 by the end of 2021. <\/p>\n<p>Despite fielding major criticism of stock-to-flow this year, PlanB has defended his model, and his faith was justly rewarded when Bitcoin rose to exactly hit the model price last week. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/b70ce9d9-669c-41e9-bb9f-c6966c97bc5c.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin stock-to-flow historical chart. Source: Digitalik<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Elliott_Wave_Theory\"><\/span>Elliott Wave Theory<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s been a testing year for another popular Bitcoin price prediction tool. The Elliott Wave Theory \u2014 more of a price map than a strict set of targets \u2014 has had a difficult twelve months.<\/p>\n<p>Not specific to Bitcoin, Elliott Wave delivers a multi-step market cycle which aims to track highs and lows of an asset.<\/p>\n<p>Due to its nonspecific nature, however, those predictions are often huge, but Bitcoin has delivered before due to its inherently volatile nature early in its existence.<\/p>\n<p>2020 likewise produced moments of clarity using Elliott Wave, but April\u2019s prediction of a fresh retracement to $3,000 \u2014 matching the pit of the 2018 bear market \u2014 failed to come to pass.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Rainbow_Chart\"><\/span>Rainbow Chart<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lastly, a sight to behold at $23,000 is Bitcoin\u2019s position on the so-called <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.blockchaincenter.net\/bitcoin-rainbow-chart\/\">Rainbow Chart<\/a>. <\/p>\n<p>A light-hearted log chart of BTC\/USD, Rainbow breaks down price levels into a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of buy and sell tips \u2014 roughly one for each color of the rainbow.<\/p>\n<p>Ranging from red (\u201cmaximum bubble territory\u201d) to dark blue (\u201cbasically a fire sale\u201d), these tell investors and hodlers what to expect next from Bitcoin based on its upward or downward direction.<\/p>\n<p>Right now, even at near all-time highs, BTC\/USD is still heading upwards and is only in the light green band which the model describes as \u201cstill cheap.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/959ec4e9-9e74-4f4d-9d96-f14bdff3e920.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin &#8220;rainbow&#8221; price chart. Source: Blockchaincenter.net<\/em><\/figcaption><\/figure>\n<p>As with stock-to-flow, Rainbow thus predicts more upside potential for Bitcoin, now that $20,000 resistance <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears firmly a thing of the past.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/how-the-most-popular-price-models-in-bitcoin-fared-in-2020\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# How the most popular Bitcoin price prediction models fared in 2020 &#8221; From $3,600 lows to all-time highs of just above $24,000, 2020 was the year that Bitcoin (BTC) surprised analysts like never before. With predicting its next move becoming ever more difficult, there\u2019s likewise never been more demand for an accurate Bitcoin price&#8230;<\/p>\n","protected":false},"author":1,"featured_media":140804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/6244e824-e9dc-47c9-bfd6-b4498bda3777.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,73785,68637],"class_list":["post-140803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-markets","tag-predictions"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/140803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=140803"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/140803\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/140804"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=140803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=140803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=140803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}