As the crypto market inches past $2 trillion valuations, Bitcoin (BTC) has gained over 5% in the last 24-hours moving past $47,500 levels. It is for the first time in the last three months that the BTC price has crossed these levels.
As it turns out, Bitcoin has been very precisely following the Stock-to-Flow (S2F) model developed by popular crypto analyst PlanB. Back in June 2021 when BTC was under pressure trading below $35K, Plan B gave his prediction for the months following August. It shows that the BTC price is heading at $135K by the end of December 2021.
? Aug > $47K https://t.co/tj6SSwSzKR
— PlanB (@100trillionUSD) August 13, 2021
Along with the current price surge, Bitcoin (BTC) has also shown significant improvement in some on-chain metrics.
Bitcoin (BTC) On-Chain Metrics
On-chain data shows that Bitcoin miners have once again started with strong accumulation. Over the last month, the miner balances have been on a continuous rise which is a healthy sign. It means miners are expecting a further surge in Bitcoin price and are not willing to book profits as of now.
Another on-chain data provider Santiment reported that Bitcoin supply on exchanges has dropped to a two-week low. This is an encouraging sign and suggests that more BTC is going to cold wallets. The Bitcoin Supply at exchanges has dropped to a two-month low.
Glassnode has also made a similar observation with the Bitcoin exchange outflows. It noted:
Bitcoin has continued to flow out of exchanges in August at a rate between 75k and 100k per month. This magnitude of outflow is similar to the period between 2020 and Q1 2021, where heavy accumulation, and the GBTC arbitrage trade dominated.
All metrics are currently in favor of Bitcoin at this point and we can see it going to $50,000 levels soon if things go well. However, with the recent altcoin rally, Bitcoin dominance in the overall crypto space has dropped by 2 percentage points and is currently at 44.8%.