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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.
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