Bitcoin, the world’s largest cryptocurrency, is showing signs of a potential bullish rally as indicated by a unique technical pattern known as the Stablecoin Supply Ratio (SSR) Oscillator. This metric measures the market sentiment by comparing the supply of stablecoins to Bitcoin, providing insights into buying and selling opportunities for traders and analysts. The SSR oscillator breaking below the lower Bollinger Bands is seen as a positive signal for Bitcoin’s price to ascend further and possibly kick-start a long-awaited bull run in the current market cycle.
The SSR oscillator is calculated by comparing the current Stablecoin Supply Ratio value to its 200-day Simple Moving Average (SMA) and dividing it by the standard deviation of the SSR over the same period. This calculation helps in interpreting signals that indicate bullish or bearish trends in the market. When the oscillator falls below the lower Bollinger Band, it suggests reduced dominance of stablecoins and signals a bullish sentiment that could potentially lead to a Bitcoin rally.
Analyzing the movements of the SSR oscillator, crypto analyst Dominando Cripto has identified periods of bearish and bullish sentiment, categorizing them as heated zones and cold zones, respectively. The recent market movements suggest that the SSR oscillator is currently in the cold zone, indicating a favorable outlook for Bitcoin’s price to rise in the near future. This analysis aligns with the optimistic view of an impending bullish trend in the cryptocurrency market.
On May 18, Blockchain analytics platform Santiment reported a new market trend where small traders were consistently liquidating their BTC holdings despite positive performance in the cryptocurrency. Historically, when smaller wallets transfer coins to larger wallets, it is considered a positive indicator for Bitcoin, signaling a potential bullish turnaround for the pioneer cryptocurrency. This trend, combined with the SSR oscillator’s signals, further reinforces the optimism for a bullish Bitcoin rally.
At the time of writing, Bitcoin’s price is trading at $66,955 according to CoinMarketCap. With the SSR oscillator indicating bullish sentiment and encouraging market trends supporting a potential rally, many analysts and traders are optimistic about Bitcoin’s price ascending further in the coming days. The convergence of technical indicators and market signals presents a compelling case for a positive trajectory for Bitcoin in the near term.
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