Rare Liquidity Signal That Preceded Bitcoin Rallies Reappears

In Brief

• Stablecoin Supply Ratio nears historic low, signaling rising liquidity potential.
• Binance reserves show capital buildup as Bitcoin reserves continue to decline.
• Open interest drops 11%, suggesting deleveraging and possible market rebound.

Bitcoin’s liquidity metrics have reached levels historically linked to strong market recoveries, signaling a potential shift in market direction. Analysts observe that the Stablecoin Supply Ratio (SSR) has returned to its lower historical range near 13, suggesting elevated buying power in stablecoins.

A lower SSR means stablecoin reserves are growing faster than Bitcoin’s market value, creating significant liquidity waiting to re-enter the market. Each time this ratio approached similar levels since 2020, Bitcoin rebounded sharply in the following weeks.

Stablecoin reserves on Binance are also climbing, while Bitcoin reserves continue to decline, reinforcing the accumulation trend. This divergence implies growing investor readiness to deploy capital, often preceding phases of renewed bullish momentum.

Market data indicates that this setup has only occurred a few times in recent years, each followed by a price expansion of 40% to 120%. Therefore, traders are closely watching whether the current configuration will trigger another upside cycle.

Analysts See Deleveraging and Key Technical Levels Aligning

Additional on-chain metrics highlight a recent 11.32% decline in Bitcoin’s open interest, confirming a broad deleveraging phase across derivatives markets. Such contractions historically align with periods of market stabilisation, as leveraged positions unwind and excess risk dissipates.

Past instances of similar open interest drops below 10% often marked local bottoms before strong price recoveries. Consequently, analysts consider the current environment a potential foundation for the next accumulation phase.

At the same time, Bitcoin faces resistance around $107,000 to $108,000, while support lies near $104,000, aligning with a CME gap. Traders anticipate that a short-term correction to this support level could precede a technical rebound.

Combined, the liquidity buildup, stablecoin growth, and reduced leverage point to a crucial inflection zone for Bitcoin. If these levels hold, market conditions could shift toward renewed strength in the coming sessions.