More Capital Ready to Enter Bitcoin, Reveals On-Chain Indicators

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A technical bias conflict in the Bitcoin market is looking to influential on-chain indicators for cues—and most of them are favoring bulls. Leisl Eichholz, an analyst at blockchain analytics platform Glassnode, listed a flurry of upside cues for Bitcoin, including a so-called Stablecoin Supply Ratio (SSR) that signals a rally ahead in the cryptocurrency market. In retrospect, SSR is the ratio between the Bitcoin supply and the supply of stablecoins denoted in BTC. Glassnode notes that if the SSR is low, the current stablecoin has more buying power to buy Bitcoin. Conversely, a high SSR reading reflects a brewing selling pressure in the Bitcoin market. “BTC’s SSR has been declining in 2021 as more stablecoins are minted,” noted Ms. Eichholz in her weekly note to clients. “When SSR is low, this means that there is a large supply of stablecoins relative to BTC, which indicates more buying power ready to…

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