Stablecoin Liquidity Signal Points to Bitcoin’s $120K Breakout
CryptoQuant data shows the Stablecoin Supply Ratio (SSR) has plunged to its historic low range near 13, flashing a Bitcoin liquidity signal last seen before the 2020, 2021 and mid-2024 rallies. According to analyst Ignacio Moreno, such troughs in SSR typically mark accumulation zones ahead of major BTC breakouts. Binance data reveals rising stablecoin reserves alongside declining BTC balances, suggesting latent buying power ready to deploy. This fresh Bitcoin liquidity signal suggests downside risk is limited while upside potential expands as liquidity rotates back into BTC.
Technical analyst Bitcoinsesus identifies a falling wedge pattern, noting that a breakout above $106,000 could trigger a surge toward $120,000. VALR CEO Farzam Ehsani adds that easing U.S. shutdown concerns and proposed $2,000 checks have lifted crypto by 4.5% in 24 hours. Traders now eye next week’s U.S. CPI release: sticky inflation could stall gains, while a decisive close above the $106K–$110K zone would confirm a new bullish cycle and pave the way for a retest of all-time highs – potentially $130,000 by year-end.
Bullish
Bullish. The reappearance of the Bitcoin liquidity signal at historic SSR lows parallels past accumulation phases that preceded sharp rallies. Rising stablecoin reserves versus falling BTC balances indicate latent buying power and structural capitulation—environments where downside proved limited and upside accelerated. The falling wedge pattern adds a technical catalyst, with a breakout above $106K historically triggering strong moves. Easing macro uncertainty and fiscal measures have already lifted prices, and a close above $106K–$110K would likely confirm a new bull cycle, setting BTC on course for $120K–$130K. Thus, both on-chain liquidity indicators and chart patterns support a bullish outlook.