According to analysts' observations, the supply of stablecoins has risen to bear market levels, indicating that buyers may soon trigger a new round of upward momentum in the BTC and cryptocurrency markets.
Key Points:
The Bitcoin stablecoin supply ratio has dropped to bear market lows, suggesting that the BTC price has bottomed out.
The increase in stablecoin reserves on the Binance platform, coupled with a decrease in BTC supply, indicates that buyer liquidity is accumulating.
The descending wedge breakout pattern for BTC points to a historical high of $124,000.
According to the latest analysis, the stablecoin ratio for Bitcoin has fallen to levels that historically mark the bottom for BTC.
CryptoQuant analyst MorenoDV noted in a quick analysis report that the Stablecoin Supply Ratio (SSR) has retreated to "historically low ranges (13) — the same as the mid-2021 and the entire 2024 area marking market bottoms." He further added:
A low SSR indicates that stablecoin liquidity is quietly accumulating, which may create conditions for a market rebound or the final wave of this bull market.
The Binance Bitcoin/Stablecoin Reserve Ratio (SRR) is also showing the same trend.
The chart below shows that stablecoin reserves on the Binance platform are rising while BTC reserves are decreasing. The analyst stated, "This pattern has appeared multiple times before market recoveries," and emphasized:
The increase in stablecoin supply means there is more idle capital in the market that can be deployed into the cryptocurrency market at any time.
Historically, this pattern typically occurs during structural sell-offs or phases of seller exhaustion, when weak holders exit the market while strong holders begin to accumulate quietly.
André Dragosch, the European research director at investment firm Bitwise, shared a chart showing that the seller exhaustion constant for short-term holders has dropped to its lowest level since August 2023.
This indicator reaches such levels when market volatility is low but on-chain realized losses are high, indicating that sellers have exhausted their strength.
Past occurrences of similar levels have signaled price increases, with the last instance resulting in BTC prices rising 190% from $25,300 in August 2023 to $74,000 in March 2024.
Sellers exhausted ✅ pic.twitter.com/ROTggxDKfy
As previously reported by Cointelegraph, the MVRV ratio (Market Value to Realized Value ratio) also indicates that BTC may have bottomed out at $98,000 due to seller exhaustion.
The daily candlestick chart shows the BTC/USD pair trading within a descending wedge pattern, after being resisted at the upper trend line of this pattern near $107,000.
A descending wedge is typically a bullish reversal pattern, and BTC's continued consolidation within this trend line suggests that the downtrend may be nearing its end.
Analyst Mister Crypto pointed out in a post on the X platform on Tuesday, "BTC is trading within this descending wedge," and further added:
A daily close above $107,000 will confirm this pattern, paving the way for BTC to reach the bullish target of $124,000, a 19% increase from the current price. This aligns with the previous high reached on August 14.
Private wealth management firm Swissblock stated in its latest BTC analysis, "Risk aversion signals have shifted back to a low-risk state, indicating that as BTC warms up, selling pressure is easing." The firm further noted:
Related: As corporate treasuries continue to expand, Strategy's Bitcoin (BTC) dominance fell to 60% in October.
This article does not constitute any investment advice or recommendation. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.
Original article: “Analysts: Bitcoin (BTC) Liquidity Patterns Signal 'Pivotal Moment' Approaching, Target Price $124,000”
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