en.bitcoinsistemi.com
Cryptocurrency analytics firm Alphractal has published a new analysis on the Stablecoin Ratio Channel, a key indicator that tracks liquidity movements in the market.
The company noted that in the short term, risk signals for Bitcoin ($BTC) are beginning to emerge, but there is still uncertainty in the long-term outlook.
According to Alphractal, the Stablecoin Ratio Channel (Short-Term) indicator is currently indicating increasing selling pressure for Bitcoin. This coincides with strong resistance levels in the $113,000-$114,000 range, which was highlighted in previous analysis. The company notes that these levels could trigger a rotation from $BTC to stablecoins.
In contrast, the Stablecoin Ratio Channel (Long-Term) indicator has only just reached the halfway point of its cycle. In past market cycles, this mid-level has paved the way for healthy corrections in bull markets and selling pressure in bear markets.
Alphractal explains how this metric works:
- When the ratio is low, it means there is an excess of stablecoins in the market, which is usually a positive signal for $BTC accumulation.
- When the ratio reaches high levels, selling pressure increases to convert $BTC back into stablecoins.
*This is not investment advice.