After a period of facing some downwards pressure, Bitcoin bulls have been able to step up and lead the crypto higher, pushing it back into the mid-$6,000 region.<\/p>\n
This recent price action seems to indicate that both bulls and bears have reached an impasse, as neither have been able to garner any decisive momentum in the time following BTC\u2019s rejection at $6,900.<\/p>\n
Importantly, one fundamental indicator is suggesting that bulls may soon gain the upper hand over bears, as the amount of capital that is currently sidelined within stablecoins could suggest that bulls have a massive war chest to fuel an intense upwards movement.<\/p>\n
At the time of writing, Bitcoin<\/a> is trading down just over 1% at its current price<\/a> of $6,350, which marks a slight rebound from daily lows of $6,200, and a decline from highs of nearly $6,500.<\/p>\n This current bout of sideways trading marks a significant extension of that which Bitcoin has been facing after breaking above $6,000 last week, with bulls and bears forming a large trading range between roughly $5,800 and $6,900.<\/p>\n This consolidation has had a ripple effect spanning across the entire cryptocurrency market, with virtually all major altcoins seeing similar price action throughout the past several days.<\/p>\n In the near-term, which direction Bitcoin trends<\/a> next will likely be largely dependent on whether it breaks above the lower or upper boundaries of its trading range.<\/p>\n One factor that investors should consider is that the traditional markets are beginning to see a continuance of their March capitulation, with all of the benchmark stock indices shedding nearly 5% of their value<\/a> today.<\/p>\n One factor that could bolster bulls eventually is the fact that the Stablecoin Supply Ratio is currently nearing an all-time low, showing that the current stablecoin supply has significant buying power and could bolster BTC.<\/p>\n \u201cStablecoin Supply Ratio (SSR) is near its ATL. Low SSR means the current stablecoin supply has strong buying power to purchase BTC and push the price up. USDT (ERC20) exchange balances at an ATH indicates that those coins are waiting on the sidelines,\u201d Glassnode noted in a recent tweet.<\/p><\/blockquote>\n Stablecoin Supply Ratio (SSR) is near its ATL.<\/p>\n Low SSR means the current stablecoin supply has strong buying power to purchase $BTC<\/a> and push the price up.$USDT<\/a> (ERC20) exchange balances at an ATH indicates that those coins are waiting on the sidelines.https:\/\/t.co\/r1Re9UoVNv<\/a> pic.twitter.com\/I5ZFnScnLX<\/a><\/p>\n — glassnode (@glassnode) April 1, 2020<\/a><\/p><\/blockquote>\nCould Stablecoin Holdings Tip the Scale in BTC Bull\u2019s Favor?<\/strong><\/h2>\n
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