Quant analyst PlanB is leaning bullish on Bitcoin (BTC) as the flagship crypto asset trades in a range below the all-time high reached late last month.

In a new strategy session, PlanB tells his 213,000 YouTube subscribers that Bitcoin is far away from reaching the peak of the current four-year cycle based on the stock-to-flow model.

The stock-to-flow model is a predictive tool that assumes the scarcity of a commodity drives the price.

“Bitcoin price [is] at $104,000, which is still far away from the stock-to-flow value of $500,000 based on fundamentals, scarcity fundamentals. That’s what I expect the average over this four-year cycle to be. So we’re still far away from that. But we’re also still only one year in the cycle, we have three years to go and so I think Bitcoin is very undervalued.”

According to Plan B, Bitcoin is at the “very beginning of a bull market” based on historical precedent.

“We made a fake loop in bull market territory after the January 2024 [spot Bitcoin exchange-traded funds] ETF introductions. And we’re now right back at where all the bull markets in the past have started. So it’s a very bullish signal if you ask me.”

The quant analyst says Bitcoin could skyrocket by up to approximately 860% over the course of the current cycle.

“[Bitcoin] is currently in a bull market, targeting… let’s say $250,000 to $1 million range for the average price in this cycle.”

Bitcoin is trading at $104,300 at time of writing.

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