As Biden suggested, "It is a time for healing." - I believe it is absolutely true for a time of healing in all aspects of the world, including Bitcoin.
What is the Stock to flow? (about this indicator) As suggested by the creator of this indicator, 'PlanB': "SF = stock / flow. Stock is the size of the existing stockpiles or reserve. Flow is the yearly production."
In simple terms: Stock = How many Bitcoins are currently in circulation Flow = How many Bitcoins are created each year
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Here I would like to explain the observations based on my own - these are the FIVE main phases of price action:
Without getting too much into the mathematical details and formulas on how this indicator was created, this is a perfect indicator, in my opinion, to show the overall observation of where Bitcoin stands from a visualized perspective, where it shows that Bitcoin can withstand anything in any certain period of time. The first and foremost, Bitcoin has not only have we survived the harshest conditions of the market for 2020 (and 2018 alike), Bitcoin's fundamentals are getting incredibly stronger by the day; furthermore, Bitcoin is now collectively seen as a form of investment tool and regarded by many as one of the best returning assets of the decade. I believe the next decade is yet to offer more when the fundamentals of Bitcoin is much clearer and clears up the issue of scalability and overall issues with price maturity.
The most important aspect of this chart is to find where you can start investing Bitcoin . This answers the million dollar question of, "When can I buy Bitcoin?" The answer is NOW, according to this indicator. Why and based on what evidence? First, history is not indicative of the present price action, however, it does certainly rhyme with it. We can note that with each consecutive rise, it was usually after the halving events of Bitcoin . As we are now approaching into 2021, we are now putting our first step into the uncharted territory of new price discovery .
Despite the heightened level of volatility in the market, I believe it's important to emphasize that long term investors are unlikely to be fazed by the recent drop - especially after the 2020 events. The current short-term holder activity is reminiscent of previous bull trends, and if we are able to survive 2020, how can we not survive 2021-2022. As such, if BTC recovers strongly from the recent drop, the chances of a rally continuation could increase.
What will you do? We hope that you are able to be disciplined this time and learn from the past mistakes of every year, and it is increasingly showing that we are well on our way to new uncharted territories of ATH .
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