Glassnode flags indicator of potential Bitcoin upside

Analysts at Glassnode say that the Stablecoin Supply Ratio (SSR) metric indicates heightened potential for an upward move in Bitcoin’s price.

The current Stablecoin Supply Ratio (SSR) indicates a high buying power of stablecoins over #Bitcoin – and therefore an increased potential for an upwards movement of $BTC.

SSR is 3x stronger than it was when $BTC hit these price levels over a year ago.https://t.co/Rx5wQTn0mp pic.twitter.com/wSG6OwVNJ1

— glassnode (@glassnode) August 26, 2020

SSR shows the ratio of Bitcoin supply to stablecoins, expressed in BTC. It is generally interpreted that a lower reading implies greater purchasing power of stablecoins relative to Bitcoin and a higher likelihood of a price rise.

Analysts note that the indicator is currently three times stronger than when BTC was at similar price levels last year.

They added that another bullish signal for Bitcoin is the increase in the balance of USDT (ERC20) on exchanges. The metric has been rising since the start of the year.

Source: Glassnode.

In July, Glassnode analysts noted an increase in the number of Bitcoin whales to levels seen during the 2017 rally.

Follow ForkLog on Twitter!