A crucial bitcoin metric just turned bullish, sparking optimism from one crypto analyst regarding a bitcoin-long-term-growth-at-200000/” rel=”nofollow”>imminent rally for bitcoin. This unique technical pattern suggests that the world's largest cryptocurrency could see its price rise even further, which could fuel a very welcome bitcoin-bull-run-past-its-prime-or-poised-for-a-correction-analyst-raises-eyebrows/” rel=”nofollow”>bull run this cycle.
bitcoin technical pattern turns bullish
The price of bitcoin has often followed different historical patterns, and most of these indicators precede significant rallies or downtrends. One of the most compelling signs that bitcoin may be turning bullish again is seen as the bitcoin-stablecoins-ratio-1-year-lows-why-bullish/” rel=”nofollow”>Stablecoin Supply Ratio (SSR) The oscillator breaks below the lower Bollinger Bands, a technical indicator used to measure the volatility and momentum of a market.
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According to a crypto analyst identified as 'Dominando crypto' on x (formerly twitter), the SSR is a unique technical tool designed to assess market sentiment by comparing the stablecoin supply to bitcoin. This tool is used by analysts and traders to identify buying and selling opportunities for bitcoin. Additionally, it quantifies how the SSR's 200-day simple moving average (SMA) moves within Bollinger Bands.
Dominando Cripto has provided a detailed explanation of how the SSR oscillator is calculated and how to interpret its signals to identify bullish trends.
“The oscillator is calculated by taking the difference between the current value of the Stablecoin supply index and its 200-day simple moving average (SMA), and then dividing it by the standard deviation of the SSR over the same period,” the analyst x.com/dominandocripto/status/1791820798451224865?s=46″ rel=”nofollow”>fixed.
Sharing a price chart showing the movements of the SSR oscillator, the crypto analyst suggests that when the oscillator moves above the top bitcoin-downtrend-might-be-over/” rel=”nofollow”>Bollinger Bands, suggests that the SSR is significantly higher than normal levels. This indicates that bitcoin/” rel=”nofollow”>stablecoins are dominating the market, indicating bearish sentiment and a possible slowdown 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 price chart above, Dominando crypto identified several instances where the SSR oscillator showed bearish and bullish sentiment, identifying these periods as hot zones and cold zones, respectively. Recent market movements indicate that the SSR oscillator is in the cold zone, indicating a possible bullish outlook for bitcoin.
More bullish signs for btc
On May 18, the Blockchain analysis platform, Santiment, x.com/santimentfeed/status/1792310926634631372?s=46″ rel=”nofollow”>revealed a new market trend in which small traders constantly liquidate their btc Holdingseven as the cryptocurrency has shown positive performance lately.
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The analytics platform noted that historically, when small wallets crypto-expert-700k-bitcoin-sell-off-2024/” rel=”nofollow”>throw coins In larger portfolios, it is considered an encouraging sign for bitcoin, indicating a possible bullish turn for the pioneering cryptocurrency.
At the time of writing, The price of bitcoin It is trading at $66,955, according to CoinMarketCap. Cryptocurrency has been in a big bullish momentum Recently, we witnessed an increase of 8.94% in the last seven days and an increase of 4.25% over the last month.
Featured image created with Dall.E, chart from Tradingview.com
