Analyst Says This Chart May Be Signaling A Potential Bottom For Bitcoin

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CryptoQuant analyst Maartun shares a chart indicating a potential Bitcoin bottom.

In a tweet yesterday, CryptoQuant analyst Maartun shared a Stablecoin Supply Ratio (SSR) Shock Momentum chart made by BaroVirtual, noting that the chart was showing a buy signal which could indicate a possible price bottom.

According to Maartun, ten of the 11 buy signals the chart has shown have led to huge profits in the last two years.

“This chart signals a potential bottom … SSR Shock Momentum shows a clear buying signal. In the previous two years, the indicator gave 11 buying signals, and 10 of those end-up in huge profits. 

Right now, it is again flashing a buy signal,” Maartun wrote.

 

As explained by Maartun, the SSR chart measures Bitcoin’s market cap against the market cap of all stablecoins. While the analyst concedes that the buy signal is not foolproof, he notes that it may be worth taking the risk with proper risk management based on previous performances.

It bears mentioning that Bitcoin has had a tough week, dropping below $19k for parts of Tuesday and Wednesday. According to CryptoQuant highlights this week, the lackluster price movements can be attributed to selling from old whales and miners.

As reported by CryptoQuant on Wednesday, 8-years-old 15k BTC was moved over ten days, with some making their way to exchanges. Additionally, The Crypto Basic had previously reported that miners had sold over 4k BTC as mining profitability continues to plummet and miners are forced to sell their Bitcoin rewards to improve their liquidity.

Meanwhile, in a CryptoQuant analysis released yesterday by Abram Chart, the analyst noted that there could be more downside for Bitcoin. According to the analyst, the increased supply inflow to derivative exchanges is problematic as sellers could more easily push the asset price lower with increased leverage considering the overarching macroeconomic conditions.

Bitcoin is currently trading at the $20,626.19 price point, up 7.56% in the last 24 hours.

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Source: https://thecryptobasic.com/2022/09/09/analyst-says-this-chart-may-be-signaling-a-potential-bottom-for-bitcoin/?utm_source=rss&utm_medium=rss&utm_campaign=analyst-says-this-chart-may-be-signaling-a-potential-bottom-for-bitcoin