The Stock-to-Flow Deflection metric indicates that the first cryptocurrency is still undervalued according to PlanB’s well-known Stock-to-Flow model. This is stated in ForkLog’s October analytical report.
“Stock-to-Flow (S/F) Deflection is the ratio of Bitcoin’s current price to the S/F model. If the values are ≥ 1, that means Bitcoin is overvalued according to the model; otherwise, undervalued,” the description on the analytical service’s site says.
The chart shows the indicator sits well below the 1 mark, but since mid-July its readings have been moving upward. This may signal an impending shift in the market cycle. Nevertheless, substantial upside potential for continuing the price rally remains.
Another well-known on-chain indicator — aSOPR — remained above the 1 mark throughout October:
This points to improving market sentiment and to the fact that most investors are taking profits rather than selling at a loss.
The latest metric trends point to the continuation of the price rally.
As noted, based on the Stock-to-Flow model, DecenTrader analysts identified the potential for Bitcoin to reach $85,000.
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