A key indicator for Bitcoin recently changed its outlook to be bullish, which makes cryptocurrency experts more optimistic that Bitcoin’s value will soon go up. This unique technical pattern suggests that Bitcoin, the most valuable digital currency in the world, might continue to rise, which could start a long-awaited bull run in this market cycle.
Bitcoin’s price has often followed clear patterns over the course of its past, with different signs often pointing to big price increases or decreases. The Stablecoin Supply Ratio (SSR) Oscillator breaking below the lower Bollinger Bands is a strong sign that Bitcoin may be about to go up. Bollinger Bands are a technical tool used to measure market volatility and movement.
An expert in cryptocurrencies on X (formerly Twitter) called “Dominando Cripto” says that the SSR is a unique way to measure market sentiment because it compares the number of stablecoins to BTC. This analytical tool helps traders and experts figure out the best times to buy and sell BTC. It also measures how the SSR’s 200-day Simple Moving Average (SMA) moves within the Bollinger Bands.
Bitcoin Expert Decodes Market Sentiment
In order to find the SSR oscillator, Dominando Cripto explained further: “The oscillator is found by subtracting the current Stablecoin Supply Ratio value from its 200-day Simple Moving Average (SMA), then dividing the result by the SSR’s standard deviation over the same period.”
With the help of a price chart showing the movements of the SSR oscillator, the expert says that when the oscillator goes above the upper Bollinger Bands, it means that the SSR is much higher, which means that people are losing hope for BTC and the price may go down. On the other hand, if the oscillator falls below the lower Bollinger Band, it means that the SSR is low, which means that people are optimistic about the future of BTC and could cause a recovery.
Dominando Crypto looked at the price chart described earlier and marked times when the SSR oscillator showed bearish and bullish sentiment. They called these times “heated zones” and “cold zones,” respectively. Recent changes in the market show that the SSR oscillator is now in the cold zone, which suggests that Bitcoin may be about to go up.
On May 18, blockchain analytics platform Santiment reported a new market trend: small traders are regularly selling their Bitcoin (BTC) holdings, even though Bitcoin has been doing well lately. Historically, when small wallets move coins to more expansive wallets, it has been seen as a good sign for Bitcoin, pointing to a possible turn for the better for the top cryptocurrency.
CoinMarketCap says that Bitcoin is worth $66,955 at the time of this writing. Bullish momentum has been building in the coin lately, with an 8.94% rise in the last seven days and a 4.25% rise in the last month.
