Stablecoin

Rally

Bitcoin

when

A crucial Bitcoin metric has just turned bullish, sparking optimism from a crypto analyst regarding an <a href="https://bitcoinist.com/scaramucci-sets-bitcoin-long-term-growth-at-200000/" rel="nofollow">impending rally for Bitcoin</a>. This unique technical pattern suggests that the world’s largest cryptocurrency could see its price ascending further, potentially kick-starting a highly welcomed <a href="https://bitcoinist.com/bitcoin-bull-run-past-its-prime-or-poised-for-a-correction-analyst-raises-eyebrows/" rel="nofollow">bull run this cycle</a>.&nbsp; 
<h2 id="bitcoin-technical-pattern-flips-bullish">Bitcoin Technical Pattern Flips Bullish</h2> 
Bitcoin’s price has often followed distinct <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-top-already-historical-pattern-so/">historical patterns</a>, with the majority of these indicators preceding significant rallies or bearish trends. One of the most compelling signs that Bitcoin may be turning bullish again is seen as the <a href="https://bitcoinist.com/bitcoin-stablecoins-ratio-1-year-lows-why-bullish/" rel="nofollow">Stablecoin Supply Ratio (SSR)</a> Oscillator breaks below the lower Bollinger Bands, a technical indicator used to measure a market’s volatility and momentum.&nbsp; 
According to a crypto analyst identified as ‘Dominando Cripto’ on X (formerly Twitter), the SSR is a unique technical tool designed to evaluate the market sentiment by comparing the <a href="https://www.newsbtc.com/bitcoin-news/stablecoin-cap-early-signs-of-reversal-why-goodr-bitcoin/">supply of stablecoins to Bitcoin</a>. This tool is used by analysts and traders to identify <a href="https://www.newsbtc.com/news/bitcoin/quant-explains-stablecoin-ratio-bitcoin-buy-sell-signals/">buying and selling opportunities</a> for Bitcoin. Additionally, it quantifies how the 200-day Simple Moving Average (SMA) of the SSR moves within the Bollinger Bands.&nbsp; 
<img loading="lazy" decoding="async" class="size-medium wp-image-608908" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Bitcoin-1.jpeg?w=460&amp;resize=460%2C259" alt="Bitcoin 1" width="460" height="259" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Bitcoin-1.jpeg?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/05/Bitcoin-1.jpeg?w=460&amp;resize=460%2C259 460w" sizes="(max-width: 460px) 100vw, 460px" data-recalc-dims="1"> 
Dominando Cripto has provided an in-depth explanation of how the SSR oscillator is calculated and how to interpret its signals for identifying bullish trends.&nbsp; 
“The oscillator is calculated by taking the difference between the current Stablecoin Supply Ratio value and its 200-day Simple Moving Average (SMA), then dividing it by the standard deviation of the SSR over the same period,” the analyst <a href="https://x.com/dominandocripto/status/1791820798451224865?s=46" rel="nofollow">stated</a>.&nbsp; 
Sharing a price chart depicting movements of the SSR oscillator, the crypto analyst suggests that when the oscillator moves above the upper <a href="https://bitcoinist.com/bollinger-bands-creator-bitcoin-downtrend-might-be-over/" rel="nofollow">Bollinger Bands</a>, it suggests that the SSR is significantly higher than normal levels. This indicates that <a href="https://bitcoinist.com/heres-how-rising-stablecoin-supply-shaping-bitcoin/" rel="nofollow">stablecoins are dominating</a> the market, signaling bearish sentiment and a potential downturn for Bitcoin.&nbsp; 
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 <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-holds-firm-61000/">bullish sentiment</a> that could potentially trigger an incoming rally in Bitcoin.&nbsp; 
In the above price chart, Dominando Crypto pinpointed several instances when the SSR oscillator displayed bearish and bullish sentiment, identifying these periods as heated zones and cold zones, respectively. Recent market movements indicate that the SSR oscillator is in the cold zone, indicating a potential bullish outlook for Bitcoin.&nbsp; 
<h2 id="more-bullish-signs-for-btc">More Bullish Signs For BTC</h2> 
On May 18, Blockchain analytics platform, Santiment, <a href="https://x.com/santimentfeed/status/1792310926634631372?s=46" rel="nofollow">revealed</a> a new market trend where small traders are consistently liquidating their <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-accumulation-btc/">BTC holdings</a>, even as the cryptocurrency has shown positive performance lately.&nbsp; 
The analytics platform noted that historically, when small wallets <a href="https://bitcoinist.com/crypto-expert-700k-bitcoin-sell-off-2024/" rel="nofollow">dump coins</a> into larger wallets, it is considered an encouraging sign for Bitcoin, indicating a potential bullish turnaround for the pioneer cryptocurrency.&nbsp; 
At the time of writing, <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-dips-66k/">Bitcoin’s price</a> is trading at $66,955, according to CoinMarketCap. The cryptocurrency has been on a <a href="https://www.newsbtc.com/bitcoin-news/these-developments-show-that-bitcoin-bullish-momentum-is-far-from-over/">major bullish momentum</a> recently, witnessing an 8.94% increase in the last seven days and a 4.25% surge over the past month.&nbsp; 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/5fCinOvK/" alt="Bitcoin price chart from Tradingview.com" width="3286" height="1576">

Bitcoin Rally Incoming: This Major BTC Metric Just Turned Bullish Once Again

Table of Contents

NewsBTC

Other articles published on May 20, 2024

BlockDAG Emerges as a Leading Cryptocurrency with Daily $1M Presale Gains Amid Helium and XRP’s M...

Is XRP in 'Crab Market'? Solana (SOL) Reaches Major Resistance Level Before $200, Ethereum (ETH) ...

Best Altcoins Under $1 for Significant Returns: Watch for Major Gains

Top Analyst Flips Bullish on Retik Finance (RETIK) Ahead of May 21 Launch, Predicts 2500% Rally i...

Can Bitcoin break $69K this week? Key signals to watch are…

ZkSync Teases Governance Token Airdrop

Join our free newsletter for daily crypto updates!