Stablecoins Reserve Starts Moving Down, Bitcoin To Reach New ATH In October?
As explained by an analyst on , after staying at highs, the stablecoins reserve has finally started a decline. Based on this and a couple other indicators, the quant believes there is a high probability we will see a new Bitcoin all time high (ATH) in October.The stablecoins exchange reserve is an indicator that shows the total amount of fiat-tied coins currently present on exchanges.
An increase in the value of the metric could suggest an increase in the supply of dry powder for Bitcoin and other cryptocurrencies.
When the reserve starts declining, it may mean investors now want to enter into volatile markets and are exchanging these coins to do so. Large withdrawals to personal wallets or to fiat will also show up as a decrease in the indicator. The below chart shows how the value of the stablecoins exchange reserve has changed recently:The reserve indicator vs the Bitcoin price | Source:As the graph shows, the value of the stablecoins reserve made new peaks just recently. This shows how these fiat-tied coins were piling up on exchanges as investors were waiting to enter volatile markets.
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The analyst points out the regions where the RSI dipped down to quite low values, signifying bottoms. Based on this and the stablecoins reserve, the quant thinks that since Bitcoin has hit a bottom now, it should move up next, and so a new ATH could be there in October.BTC Price
At the time of writing, Bitcoin’s price floats around $47.6k, up 5% in the last 7 days. Over the past month, the crypto’s value has increased by 4%.
Here is a chart showing the trend in the price of the coin over the last five days:BTC's price moves sideways after a strong march up | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com