A BTC rally is coming: This major BTC indicator just turned bullish again
A key Bitcoin indicator just turned bullish, sparking optimism from one cryptocurrency analyst that Bitcoin is about to rebound. This unique technical pattern suggests that the world’s largest cryptocurrency may see further gains in its price, which could kick off a much-loved bull run this cycle.
Bitcoin technical pattern bullish
Bitcoin’s price often follows different historical patterns, with most of these indicators leading to significant rallies or bearish trends. One of the most convincing signs that Bitcoin may be turning bullish again is that the Stablecoin Supply Ratio (SSR) oscillator broke below the lower Bollinger Bands, a technical indicator used to measure market volatility and momentum.
According to a cryptocurrency analyst named “Dominando Cripto” on X (formerly Twitter), SSR is a unique technical tool designed to assess market sentiment by comparing the supply of stablecoins to Bitcoin. Analysts and traders use this tool to identify buying and selling opportunities in Bitcoin. Additionally, it quantifies how the SSR’s 200-day simple moving average (SMA) is moving within the Bollinger Bands.
Dominando Cripto explains in depth how the SSR oscillator is calculated and how to interpret its signals to identify bullish trends.
“The oscillator is calculated by dividing the difference between the current stablecoin supply ratio value and its 200-day simple moving average (SMA) by the standard deviation of the SSR over the same period,” the analysts said.
Sharing a price chart depicting the movement of the SSR oscillator, the cryptocurrency analyst suggested that when the oscillator moves above the upper Bollinger Bands, it indicates that the SSR is significantly above normal levels. This indicates stablecoin dominance in the market, signaling bearish sentiment and a potential downturn for Bitcoin.
Conversely, when the oscillator breaks below the lower Bollinger Bands, it indicates a lower SSR, highlighting the declining dominance of stablecoins and signaling that bullish sentiment may trigger Bitcoin’s upcoming rally.
In the price chart above, Dominando Crypto points out several instances where the SSR oscillator showed bearish and bullish sentiment, identifying these periods as hot and cold zones respectively.Recent market action shows that the SSR oscillator is in the cold zone, indicating a potential bullish outlook for Bitcoin.
More bullish signs for BTC
On May 18, blockchain analytics platform Santiment revealed a new market trend in which small traders have been liquidating their BTC holdings, despite the cryptocurrency’s recent positive performance.
The analysis platform noted that historically, when smaller wallets dump coins into larger wallets, this is an encouraging sign for Bitcoin, indicating a potential bullish turnaround for the pioneer cryptocurrency.
At the time of writing, Bitcoin’s price is $66,955, according to CoinMarketCap. The cryptocurrency has been experiencing major bullish momentum of late, rising 8.94% over the past seven days and 4.25% over the past month.
In addition, it is worth noting that Solana has unprecedented rising expectations.
Solana made a major breakout at $170 and headed towards $180. As prices recover, Solana will likely target a $200 price target and reach it in the foreseeable future.
The latest price action has been accompanied by a significant increase in trading volume, indicating strong buying pressure. The surge from $170 to $180 is noteworthy as it overcame local resistance, indicating that bulls are gaining control. This momentum could push Solana toward the highly anticipated $200 mark.
A closer look at the chart shows that Solana has broken above its 50-day and 200-day moving averages, which are key indicators of a bullish trend. A recent break above these moving averages is a strong sign of an upward trajectory. Additionally, Bollinger Bands are expanding, indicating increased volatility and the potential for further price gains.
In addition to technical indicators, on-chain data supports Solana’s bullish outlook. The number of new addresses on the Solana network has been steadily increasing, reflecting growing interest and adoption. According to data from Hellomoon, the number of new addresses in May 2024 is rising, indicating that more users are joining the network.
Additionally, the weekly transaction fee breakdown shows a rise in non-voting (priority) fees, indicating increased network usage and transaction processing demand. The increase in network activity demonstrates the increasing usefulness of the Solana blockchain.
However, while technical and on-chain indicators are encouraging, the market in general is far from euphoric and current conditions suggest that neither Solana nor cryptocurrencies are likely to reach ATHs. Inflows are far from even reaching this year’s peak, let alone the 2021 and 2017 bull runs.
