Ever wondered why major cryptocurrencies are often tied with the performance of Bitcoin in general. While not all of them are pegged with BTC, it showcases buyers the comparative performance of a market leader with other crypto performers.
BTC price action today is severely impacted by whales and Stablecoin Supply Ratio. SSR is nothing but the ratio between the total market capitalization of Bitcoin and the total market capitalization of stablecoins. As this ratio dips, stablecoins get more buying power to hold Bitcoin and spike the sentiment of the crypto market.
However, as the reverse positions start to build up, stablecoins begin their selling rampage, thus damaging the demography of BTC’s dominance in the crypto market.
Bitcoin currently holds a market capitalization similar to ETH’s during its peak valuations. With the dominance of stablecoins slowly growing, BTC will get a positive push in the long term since the buyer power will be increasing. In simple words, the rising market capitalization of stablecoin would benefit Bitcoin in the long run.
Bitcoin has gained tremendous buying momentum from recent lows of below $20,000. The consecutive days of buyers dominating the sellers have resulted in positive movement beginning to develop in the short term. Should you buy BTC? Click here to find out!
Bitcoin prices have plummeted to new lows since the Terra (LUNA) crisis that left the entire crypto world. BTC’s dip is better for stablecoins to solidify their momentum, and in the last two days, we have witnessed huge buying spikes from lower price levels.
This action is seen near an upcoming breakout trend and is a symbol of bullishness gaining momentum. Transactional volumes have breached the previous ceiling set during the May 2022 decline below $30,000. The recent drop in valuation has shocked new investors, but BTC believers will be taking advantage of these discounted valuations.
RSI in these movements has jumped from 22 to 33 in just four days. There seem to be some uncertainties since the candlestick for June 20th closed in a no-profit no-loss scenario. Bitcoin has witnessed a strong support formation near $18,700 levels which is confirmed by the formation of wicks during the weekends.
We can expect BTC to reach $30,000 again by the end of 2022 and a fresh emergency of a bullish trend for the crypto market in general.
Source: https://www.cryptonewsz.com/bitcoin-rose-from-18700-usd-level-will-btc-cross-30k-usd/