Bitcoin Indicator Shows Market At Liquidity Equilibrium – What Next?
The Bitcoin Rollercoaster: Hold On Tight!
So, here we are, folks! The Bitcoin party is still shuffling along, but let’s be real, it’s not exactly doing the cha-cha right now. After a not-so-glamorous 2.41% slip in the last week, Bitcoin has found its way back to around $68,000. But let’s not forget, that’s still a hefty 46% below its jaw-dropping high of $126,100 back in late 2025. Ouch!
What’s Cooking with the Stablecoin Supply Ratio?
In a recent chat on CryptoQuant, our friend MorenoDV, who prefers to keep their identity under wraps, shed some light on something called the Stablecoin Supply Ratio (SSR). Now, don’t let that fancy term make your head spin! Think of SSR as the ultimate liquidity barometer for Bitcoin. It tells us how much buying power is hanging around, waiting to make its move.
When the SSR is singing high notes, it means Bitcoin’s market cap is sitting pretty compared to stablecoins. In simpler terms, there’s less buying power just chillin’ on the sidelines. On the flip side, a low SSR implies stablecoins are flexing their muscles, hinting at more potential buying power in the mix.
Is This Indicator a Friend or Foe?
According to MorenoDV (might we say, a sage of the crypto jungle), the SSR isn’t just a straightforward “yay” or “nay” signal. It’s more like a riddle that depends on how we approach that important number of 9.5. If we’re diving down towards 9.5 from higher waters, it usually signals that stablecoin liquidity is getting stronger, which in the past has helped Bitcoin bounce back.
Now, if we see the SSR creeping up towards 9.5 from lower levels, it’s a different tune — that usually means liquidity is fading away, which can often lead to those pesky local tops and short-term corrections. Who invited those guys to the party?
The Critical 9.5 Level: The Equilibrium Zone
MorenoDV refers to the 9.5 level as our beloved liquidity equilibrium zone. It’s like the seesaw of the crypto market — it can act as either support or resistance depending on how traders approach it. So, while everyone keeps a keen eye on Bitcoin’s epic journey through this critical zone, they’ll be watching to see if stablecoin inflows are steady or if we’re nearing a liquidity meltdown. No one likes to crash at a party!
The Latest Bitcoin Buzz
As I’m writing this (and possibly munching on some snacks), Bitcoin’s price is strutting at about $68,840, which shows a little pep in its step with a 3.97% rise over the last 24 hours. But don’t get too excited just yet; trading volume just took a detour, dropping by 15.3% and hanging out at around $37.33 billion.
According to our pals over at Coincodex, the Fear and Greed index is currently sitting at a cool 9. It seems investors are playing it super cautious — like wearing two masks in a pandemic. But don’t lose hope! Analysts from Coincodex think that the tides may be turning, with predictions of a rallying target at $73,769 in just five days and reaching $77,687 in a month!
And if that’s not enough, there’s even talk of a three-month goal of $72,480, all while hinting at a possible retracement fight following the initial surge. Classic crypto antics, am I right?