A key Bitcoin indicator just turned bullish, sparking optimism among crypto analysts regarding: upcoming augment in the Bitcoin price. This unique technical pattern suggests that the price of the world’s largest cryptocurrency could rise further, potentially starting a very welcome trend Taurus will start this cycle.
Bitcoin’s technical pattern is reversing bullish
Bitcoin’s price often differed from others historical patterns, with most of these indicators preceding significant increases or downward trends. One of the most compelling signs that Bitcoin could turn bullish again is perception Stablecoin Supply Ratio (SSR) The oscillator is breaking below the lower Bollinger Bands, a technical indicator used to measure market volatility and momentum.
According to a cryptocurrency analyst identified on X (formerly Twitter as “Dominando Cripto”), SSR is a unique technical tool designed to assess market sentiment by comparing supply of stablecoins to Bitcoin. This tool is used by analysts and traders for identification buying and selling opportunities for Bitcoin. Additionally, it quantifies how the 200-day Plain Moving Average (SMA) SSR moves within Bollinger Bands.
Dominando Cripto explained in detail how the SSR oscillator is calculated and how to interpret its signals to identify bullish trends.
“The oscillator is calculated by taking the difference between the current value of the Stablecoin’s supply factor and its 200-day simple moving average (SMA), then dividing it by the standard deviation of the SSR over the same period” – analyst he stated.
Sharing a price chart showing the movements of the SSR oscillator, the cryptocurrency analyst suggests that once the oscillator moves above the upper Bollinger Bandssuggests that SSR is much higher than normal levels. This indicates that Stablecoins dominate market, signaling bearish sentiment and a potential downturn for Bitcoin.
Conversely, when the oscillator falls below the lower Bollinger Band, it means that the SSR is low, which highlights the reduced dominance of stablecoins and signals bullish moods which could potentially trigger an upcoming surge in Bitcoin’s price.
In the price chart above, Dominando Crypto has highlighted several instances when the SSR oscillator showed bearish and bullish sentiments, identifying these periods as balmy zones and frosty zones respectively. Recent market movements indicate that the SSR oscillator is in a frosty zone, indicating a potential bullish outlook for Bitcoin.
More bullish signs for BTC
On May 18, the Blockchain Santiment analytical platform, revealed a up-to-date market trend where diminutive traders are consistently liquidating theirs shares in BTCeven though the cryptocurrency has shown positive results recently.
The analytics platform has seen this historically with diminutive portfolios throw away coins to larger wallets, this is considered an encouraging sign for Bitcoin, pointing to a potential bullish return for the pioneering cryptocurrency.
At the time of writing Bitcoin price According to CoinMarketCap, the price is $66,955. Cryptocurrency was found on main growth momentum recently, recording an augment of 8.94% over the past seven days and an augment of 4.25% over the past month.
Featured image created with Dall.E, chart from Tradingview.com
