A Bitcoin analyst thinks a new ATH is likely in October. Because: On-chain data shows a massive stablecoin inflow towards BTC.
Stablecoin reserves sink – new BTC all-time high in October?
According to a CryptoQuant analyst, the stablecoin reserves are finally decreasing after a peak. Based on this and a few other indicators, the analyst believes: There is a high probability that 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 on exchanges.
An increase in the value of this metric could indicate an increase in the supply of “gunpowder” for Bitcoin and other cryptocurrencies.
If the reserve starts to decline, it may mean that investors now want to enter volatile markets and exchange these coins for this purpose. Large withdrawals in personal wallets or in fiat are also shown as a decline in the indicator.
The following chart shows how the value of the stablecoins exchange reserve has changed recently:
As the graph shows, the value of the stablecoins reserve has only recently reached new highs. This shows how these fiat-linked coins pile up on the exchanges as investors wait to get into the volatile markets.
Fewer and fewer stablecoins on the stock exchanges
At the moment it looks like the indicator has started to decline. Lately it has been shown that with such a decline, the price of BTC rises as these coins flow into the cryptocurrency.
The chart also includes two other indicators: the Bitcoin Relative Strength Index (RSI) and the stochastic RSI. The RSI uses the extent of recent price changes to assess whether the coin is oversold or overbought.
Low values of the indicator suggest that BTC is currently oversold, while higher values suggest that it is overbought.
The analyst points to the regions where the RSI has dropped to fairly low levels, indicating a low point. Because of this and the stablecoins reserve, the analyst is of the following opinion: Bitcoin has now bottomed and should move up next, so that a new all-time high could be reached in October.
At the moment (time of this article) the Bitcoin price is hovering around $ 48.6k and has risen by 8% in the last 7 days. In the past month, the value of the cryptocurrency has increased by 5%.
Here is a chart that shows the price of the coin over the past five days:
Proof of text: Newsbtc
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