Bitcoin has failed to react despite an overflow of positive developments signalling trouble ahead for the digital asset.
The Stock-to-Flow creator, PlanB, remains optimistic nevertheless and confident that Bitcoin will reach $288K.
Since Bitcoin slipped below $40K, any attempt to regain this position has failed. The digital asset has in particular been stuck in a tight range between $35,000 and $38,000. At this local high, the digital asset is coming under selling pressure. Similarly, the asset has good support at $35,000 ensuring a swift bounce back below this level.
In its failure, Bitcoin has managed to hold the wider market with top altcoins struggling to break above resistance. At the time of press, the market is just above $1.5 trillion with Bitcoin holding the biggest share with a 44 percent dominance.
Week in review
In the past week, the crypto community was expecting a big reaction following a string of positive developments around the digital asset.
Some of the most iconic developments included Bitcoin officially becoming legal tender in El Salvador. Initially proposed at the Bitcoin 2021 conference, El Salvador finally went through with this after approval by the state congress. The community believes that this is the first of many countries that inevitably recognize BTC as real money. On the same, the president also confirmed that his government would begin selling volcano power to miners.
Also Read: El Salvador president plans to power Bitcoin mining with volcanic geothermal energy
Speaking of energy consumption, this week also saw Elon Musk lose any role in the Bitcoin mining council as it went live. Elon Musk, who has become a controversial figure in the crypto community has this week not spurred any reaction from the community.
Also Read: Bitcoin Mining Council: “Elon Musk has no role at the council.”
Mid-week, a report revealed that Microstrategy had seen an oversubscription to the tune of $1.6 billion after offering $500 million worth of bonds to be used to buy BTC. This was a clear indication that investors are still optimistic and are taking the opportunity to accumulate.
Also Read: Microstrategy $1.6 billion bonds offer highlights unwavering institutional interest in Bitcoin
Other developments also included the New York state rejecting a proposal that called for a 3-year ban on Bitcoin mining. In Texas, the state passed a bill that means that businesses and banks can hold cryptocurrencies. Additionally, over the weekend, the Bitcoin Taproot upgrade was locked. The upgrade will see much-needed improvements implemented on the blockchain.
Also Read: Bitcoin Taproot upgrade locked over the weekend, due to be enacted in November
PlanB doubles down on the $288K Bitcoin price
Despite BTC’s reluctance, the Stock-to-Flow creator is confident that the asset will reach $288K. PlanB has thus far been validated on his model and he is backing it to be right again. He noted in a tweet that despite the recent volatility, that led the token to dump nearly half of its value in recent weeks, the token remains on a vertical path.
$288K still in play. It would really surprise me if #bitcoin would not touch the black S2FX model line this phase. Regardless of current volatility, yellow green and blue dots will be (much) higher than red orange dots. pic.twitter.com/np26ypO96X
— PlanB (@100trillionUSD) June 12, 2021
In the past, PlanB has stated that a $100K BTC price at the end of the year would be highly conservative.