Stock’s deviation to flow gives a bullish signal for Bitcoin

Famous cryptocurrency market analysts are paying attention to the bullish signal generated by the Stock-to-Flow pattern deviation chart. If this is one of the most famous carals to survive its crisis, Bitcoin must resume its long-term bull market.

Stock’s deviation to flow gives a bullish signal

Stock-to-flow deviation (S2F) is a way of estimating the value of Bitcoin against one of the most popular carals of its price.

If the chart turns green, the value of Bitcoin is undervalued compared to S2F. If it’s red, it’s overrated. Thus, the chart allows you to determine whether the price of Bitcoin compared to the S2F caral is low, normal, or high.

Bitcoin stock-to-flow deviation / Source: Glassnode

Currently, the S2F deflection chart is mired in underrated green territory. We recently pointed out to BeInCrypto that this is the biggest understatement in 10 years. This happened with Bitcoin trading in a support area between $ 29,000 and $ 31,000 from May 19 to July 21, 2021.

Commenting on such low S2F deflection values, cryptocurrency trader Michael van de Poppe said in his Youtube video:

“If you are following the S2F caral, or if you are analyzing valuation through chain analysis, this is a good sign to start investing.”

He further added that the current S2F deviation is reminiscent of the first half of 2017. At that time, the BTC market also saw a deeper correction and the deviation went deep into undervalued territory. In hindsight, this moment turned out to be a great opportunity to invest in BTC.

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sixth bounce off the long-term trend line

In the same vein, popular online analyst Sera Clemente tweeted yesterday, drawing a long-term trend line on the S2F deflection chart. This line dates back to the first BTC cycle of 2011. He then marked the points where the deflection graph touched that line and connected them with vertical lines to the BTC price of that period.


It turns out that every time the deviation hits this long-term trend line, the ‘Bitcoin has taken an outright breakout’. If this scenario repeats, we can expect not only a reduction in the S2F deviation in the coming months, but also a continuation of the long-term bull market in cryptocurrencies.

Will stock-to-flow survive?

re is an ongoing discussion as to whether the current price of Bitcoin is not keeping up with the S2F caral. consequence could be the rejection of this way of caraling the main price of the cryptocurrency as not being adequate.

One of the arguments in support of this thesis is the elongation cycle theory, whose main defender is Benjamin Cowen. If, in fact, the current Bitcoin cycle is longer than the traditionally accepted 4-year periods between halves, the S2F caral may no longer be useful for predicting further BTC movements.

This is noted by the creator of the caral. Plan B himself, who openly stated in early July that the next 6 months will be decisive (“make or break”) for the relevance of S2F. Since that tweet, Bitcoin has managed to print another orange dot on top of the previous one. It gives S2F caral supporters hope that their predictions will remain true.

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