In a fresh projection drawing optimism among cryptocurrency enthusiasts, a key metric of Bitcoin has turned bullish. This development, as observed by blockchain analysts, triggers projections of a promising rally for the world’s largest cryptocurrency, positioning it favorably for an optimistic bull run this current cycle.
Historically, Bitcoin’s price trajectory has often mirrored recognizable patterns, forging a predictable path alluding to significant rallies or bearish trends. The turning of the tide into a bullish outlook for Bitcoin is backed by compelling signals emerging from the Stablecoin Supply Ratio (SSR) Oscillator, which recently dipped below the lower Bollinger Bands, a criterion employed to gauge a market’s volatility and momentum.
This analysis comes courtesy of a crypto analyst known in the industry as ‘Dominando Cripto’, a regular contributor to the platform X, formerly Twitter. The SSR, as per his explanation, is an innovative technical tool that gauges market sentiment by weighing the supply of stablecoins against Bitcoin. This metric is a popular choice among traders and experts to pinpoint the optimal moments to buy or sell Bitcoin. Furthermore, it sheds light on the movements of the 200-day Simple Moving Average (SMA) of the SSR within the Bollinger Bands’ dynamics.
In a tutorial-like discourse, Dominando Cripto elucidated on the meticulous calculation of the SSR oscillator and the proper interpretation of its signals to identify bullish trends. According to his explanation, “The oscillator is calculated by taking the difference between the current Stablecoin Supply Ratio value and its 200-day Simple Moving Average (SMA), which is then divided with the standard deviation of the SSR spanning the same period.”
In illustrating his point, the crypto savant shared a price chart tracking the SSR oscillator’s movements. He asserted that when the oscillator soars above the upper Bollinger Bands, it denotes that the SSR is sizably higher than average, implying that stablecoins hold sway in the market — a sign that heralds the bearish sentiment and a probable decline for Bitcoin.
On the flip side, when the oscillator plunges beneath the lower Bollinger Band, it signifies an SSR on the lower end of the spectrum, underlining the waning dominance of stablecoins. This shift is interpreted as a bullish sentiment likely to bring about a Bitcoin rally.
In his annotation of the shared price chart, Dominando Cripto marked out numerous instances when the SSR oscillator exhibited bearish and bullish sentiments, labeling these intervals as ‘hot zones’ and ‘cold zones’ respectively. Recent cumulations affirm that the SSR oscillator currently lies within the cold zone, implying a possible bullish forecast for Bitcoin.
Compounding this bullish projection for Bitcoin, the Blockchain analytics platform, Santiment, on May 18 revealed a recurring pattern of small traders steadily offloading their BTC holdings despite the cryptocurrency’s positive run of late.
As historical trends demonstrate, small wallets ditching coins into larger ones is perceived as a favorable sign for Bitcoin, indicating a potential bullish turnaround for the veteran cryptocurrency.
At press time, CoinMarketCap confirmed Bitcoin’s price trading at an impressive $66,955. This dominant cryptocurrency has been on a significant bullish spree of late, registering a substantial surge of 8.94% in the past week and a remarkable 4.25% hike over the former month.
