Bitcoin Stablecoin Ratio Signals Market Bottom; $124K Target In Sight
Recent CryptoQuant data shows Bitcoin Stablecoin Supply Ratio (SSR) has fallen to its historical lower range of 13, matching levels seen at mid-2021 and early 2024 market bottoms. Concurrently, Binance’s Bitcoin/Stablecoin Reserve Ratio indicates rising stablecoin reserves and shrinking BTC holdings, signaling growing buyer liquidity on the sidelines. Bitwise research highlights short-term holder exhaustion at its lowest since August 2023—conditions that preceded a 190% surge to $74,000. On-chain MVRV metrics also point to a bottom near $98,000. Technically, Bitcoin trades within a falling wedge pattern, with a daily close above $107,000 likely to clear the path for a rally toward $124,000. Risk indicators have shifted to a low-risk regime, easing selling pressure. Together, these on-chain and liquidity signals suggest Bitcoin may have bottomed, setting the stage for the next bullish leg. Traders should watch for reclaiming $108,500–$110,000 to confirm upward momentum.
Bullish
On-chain metrics like the Stablecoin Supply Ratio and Binance Reserve Ratio have reached levels historically marking Bitcoin market bottoms, indicating buyer liquidity ready to deploy. Bitwise’s short-term holder exhaustion and MVRV bottoms mirror past setups that led to major rallies. The falling wedge pattern on the daily chart is a classic bullish reversal, with a close above $107,000 targeting $124,000. Risk indicators are low, reducing selling pressure and improving the risk-reward for new positions. These converging signals point to a turning point and a high probability of an uptrend in both the short and long term.