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| Bitcoin Repeats Historical Pattern, Airdrop Blockchain |
Bitcoin (BTC) is presently trading near $67,000, set to break out of the month-long consolidation zone.
While there were initial fears about strong selling during the halving period, these concerns have subsided, clearing the stage for a possible positive advance.
Increasing Demand and Bitcoin ETF Inflows
According to AMBCrypto, Bitcoin ETFs have had considerable inflows over the last week, indicating a marked surge in demand. This increase has alleviated the selling pressure observed in previous weeks.
The big question is whether the bulls can retain their momentum to make a breakthrough.
A cryptocurrency analyst recently stated that the stablecoin supply ratio (SSR) oscillator is displaying optimistic trends. This technical indicator compares stablecoin market sentiment to Bitcoin over time.
SSR is generated by comparing the current ratio to the 200-period SMA and then dividing the result by the standard deviation over the same period to generate Bollinger Bands (BB).
The current stablecoin supply is shown above these ranges, allowing traders to gauge market sentiment. When the SSR goes below the lower Bollinger Band, it suggests low stablecoin dominance and a probable positive feeling toward Bitcoin.
Technical Analysis and Market Sentiment
The graphic accompanying the analyst report depicts how the market tends to fall back when the SSR oscillator becomes overly hot. When the lower bands are violated, it typically indicates a potential long-term purchasing opportunity.
While beneficial, the SSR oscillator is not perfect, and each signal does not ensure that prices will move in the desired direction.
Currently, the stablecoin supply ratio is below the 200-period SMA but higher than the lower Bollinger Band. This statistic slipped below the bottom range in early May, when the price of Bitcoin dropped to US$56,000. However, the price quickly regained.
The oscillator stays within the lower BB, indicating that the price may rise further. Notably, the SSR has been rising since October 2023, with intervals of stasis or decline in early January and mid-May.
Historical Patterns and Future Predictions.
Following the January downturn, Bitcoin prices soared, easily breaching the US$46,000 hurdle. This historical pattern raises expectations for a similar surge. Bitcoin may break past the US$73,000 barrier level during the next 2-4 weeks, signaling a huge breakthrough.
The upward trend in Bitcoin, along with diminishing fears about excessive selling and favorable SSR oscillator readings, provides a rosy picture for BTC.
