An analyst has explained why it may be time to prepare for a new Bitcoin rally, based on the pattern developing in this on-chain metric.
The US Bitcoin reserve ratio relative to the rest of the world has recently reversed.
In a CryptoQuant Quicktake post, an analyst discussed the recent trend in the US’s Bitcoin reserve ratio to the rest of the world.
This indicator tells us, as the name suggests, the ratio between the total Bitcoin reserves of US-based centralized platforms and those globally.
When the value of this metric is rising, it means that the asset is moving from offshore platforms to US ones, which could be a sign of demand from US-based investors.
On the other hand, the indicator's decline suggests that foreign platforms have greater demand for BTC at the moment, while American exchanges are losing dominance.
Recently, the US Bitcoin reserve ratio value bottomed out and showed an upward reversal.
This indicates that a transfer of BTC from global platforms to US-based ones is now taking place.
The analyst notes that BTC's sustained consolidation this year can be attributed to decreasing reserves from US-based platforms.
As the indicator has recently shown a reversal, it is possible that Bitcoin could see a return of bullish momentum if the previous pattern repeats.
After a 2% jump in the last 24 hours, Bitcoin is back to the $68,700 level.
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