**Stablecoin Supply Spike Signals Potential Bitcoin Rally, Analysts Say**
Stablecoin supply has surged to levels typically seen during bear markets, suggesting that buyers could soon ignite another upward movement for Bitcoin (BTC) and the broader crypto markets, according to analysts.
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### Key Takeaways:
– The Bitcoin Stablecoin Supply Ratio (SSR) is at bear market lows, signaling a possible BTC price bottom.
– Rising Binance stablecoin reserves coupled with falling BTC supply indicate increasing buyer liquidity.
– Bitcoin’s falling wedge breakout pattern targets previous all-time highs near $124,000.
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### Bitcoin Liquidity Signals a “Turning Point”
Recent analysis reveals that Bitcoin’s stablecoin ratio is currently at levels that have historically marked bottoms for BTC. CryptoQuant analyst MorenoDV noted in a Quicktake report that the Stablecoin Supply Ratio (SSR) has dropped back to its “lower historical range” around 13. This is the same zone that marked significant bottoms in mid-2021 and throughout 2024.
“Each time, Bitcoin was trading quietly before staging a strong rebound,” MorenoDV added. The low SSR suggests that stablecoin liquidity is quietly building again, potentially setting the stage for a relief rally or the final bullish leg of the current cycle.
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### Binance Reserves Show Growing Buyer Liquidity
The Binance Bitcoin/Stablecoin Reserve Ratio (SRR) paints a similar picture. Stablecoin reserves on Binance are rising, while BTC reserves are decreasing—a pattern that has consistently appeared right before major market recoveries, according to the analyst.
“We’re witnessing a liquidity configuration that has only appeared a handful of times since 2020, and each instance marked a pivotal moment for Bitcoin’s trajectory,” the report emphasized.
The growing stablecoin supply signals an increasing amount of sidelined capital ready to flow into the crypto market. Historically, this pattern emerges during phases of structural capitulation or seller exhaustion—when weaker holders exit, allowing stronger hands to accumulate quietly.
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### Signs of Seller Exhaustion Reinforce Bullish Outlook
André Dragosch, European head of research at investment company Bitwise, shared a chart highlighting the short-term holder seller exhaustion metric at its lowest value since August 2023. This indicator reaches such low levels when market volatility is subdued but realized losses on-chain are high, signaling that sellers are running out of steam.
Past occurrences of similar readings have preceded upward volatility. For instance, the previous low level in this metric led to a remarkable 190% surge in BTC price—from $25,300 in August 2023 to $74,000 in March 2024.
Supporting this, the Market Value to Realized Value (MVRV) ratio also suggests that BTC may have bottomed around $98,000 due to seller exhaustion, as previously reported by Cointelegraph.
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### Bitcoin’s Falling Wedge Pattern Targets $124,000
Technical analysis of the BTC/USD daily chart shows Bitcoin trading within a falling wedge pattern after resistance at the upper trendline near $107,000 pushed the price down.
Falling wedges are commonly bullish reversal patterns, and Bitcoin’s consolidation within these trendlines suggests the current downtrend may be nearing its end.
“Bitcoin is trading in this falling wedge,” said analyst Mister Crypto in a recent post on X, adding: “The breakout is so close now.”
A daily candlestick close above $107,000 would confirm the breakout, paving the way for Bitcoin to rise toward the wedge’s bullish target around $124,000—a potential 19% gain from current levels. This target aligns closely with Bitcoin’s previous peak reached on August 14.
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### Market Risk is Easing
Private wealth manager Swissblock noted in their latest BTC analysis that the “Risk-Off Signal has shifted back to a low-risk regime,” indicating that selling pressure is easing as Bitcoin recovers.
“BTC now needs to reclaim $108,500 to $110,000 to confirm recovery, stabilize risk, and set the stage for further upside,” Swissblock added.
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### Conclusion
The convergence of rising stablecoin supply, falling BTC reserves, technical patterns signaling bullish reversals, and seller exhaustion metrics all point toward a potential turning point for Bitcoin. If confirmed, these signals could mark the beginning of another strong upward leg in the crypto market’s ongoing cycle.
https://cointelegraph.com/news/bitcoin-liquidity-pattern-signals-pivotal-moment-124k-btc-target
