Bitcoin Rally Incoming: This Major BTC Metric Just Turned Bullish Once Again
May 20 2024 - 7:30AM
NEWSBTC
A crucial Bitcoin metric has just turned bullish, sparking optimism
from a crypto analyst regarding an impending rally for Bitcoin.
This unique technical pattern suggests that the world’s largest
cryptocurrency could see its price ascending further, potentially
kick-starting a highly welcomed bull run this cycle. Bitcoin
Technical Pattern Flips Bullish Bitcoin’s price has often followed
distinct historical patterns, with the majority of these indicators
preceding significant rallies or bearish trends. One of the most
compelling signs that Bitcoin may be turning bullish again is seen
as the Stablecoin Supply Ratio (SSR) Oscillator breaks below the
lower Bollinger Bands, a technical indicator used to measure a
market’s volatility and momentum. Related Reading: Crypto
Analysts Reveal Sub-$1 Altcoins Set To Outperform In The Bull Run
According to a crypto analyst identified as ‘Dominando Cripto’ on X
(formerly Twitter), the SSR is a unique technical tool designed to
evaluate the market sentiment by comparing the supply of
stablecoins to Bitcoin. This tool is used by analysts and traders
to identify buying and selling opportunities for Bitcoin.
Additionally, it quantifies how the 200-day Simple Moving Average
(SMA) of the SSR moves within the Bollinger Bands. Dominando
Cripto has provided an in-depth explanation of how the SSR
oscillator is calculated and how to interpret its signals for
identifying bullish trends. “The oscillator is calculated by
taking the difference between the current Stablecoin Supply Ratio
value and its 200-day Simple Moving Average (SMA), then dividing it
by the standard deviation of the SSR over the same period,” the
analyst stated. Sharing a price chart depicting movements of
the SSR oscillator, the crypto analyst suggests that when the
oscillator moves above the upper Bollinger Bands, it suggests that
the SSR is significantly higher than normal levels. This indicates
that stablecoins are dominating the market, signaling bearish
sentiment and a potential downturn for Bitcoin. Conversely,
when the oscillator falls below the lower Bollinger Band, it
indicates that the SSR is low, highlighting the reduced dominance
of stablecoins and signaling bullish sentiment that could
potentially trigger an incoming rally in Bitcoin. In the
above price chart, Dominando Crypto pinpointed several instances
when the SSR oscillator displayed bearish and bullish sentiment,
identifying these periods as heated zones and cold zones,
respectively. Recent market movements indicate that the SSR
oscillator is in the cold zone, indicating a potential bullish
outlook for Bitcoin. More Bullish Signs For BTC On May 18,
Blockchain analytics platform, Santiment, revealed a new market
trend where small traders are consistently liquidating their BTC
holdings, even as the cryptocurrency has shown positive performance
lately. Related Reading: This Crypto Trader Just Sold All His
Bitcoin For Altcoins Like Cardano And XRP, Here’s Why The analytics
platform noted that historically, when small wallets dump coins
into larger wallets, it is considered an encouraging sign for
Bitcoin, indicating a potential bullish turnaround for the pioneer
cryptocurrency. At the time of writing, Bitcoin’s price is
trading at $66,955, according to CoinMarketCap. The cryptocurrency
has been on a major bullish momentum recently, witnessing an 8.94%
increase in the last seven days and a 4.25% surge over the past
month. Featured image created using Dall.E, chart from
Tradingview.com
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