Bitcoin Market Analysis: CryptoQuant Reveals Bullish Potential for BTC
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According to a new report from CryptoQuant, Bitcoin (BTC) might be on its way to a massive leg up based on several on-chain indications. Some of these indications include the fact that miners have stopped offloading newly-minted coins into the market, likewise long-term hodlers. Also, the Stablecoin Supply Ratio (SSR) has dropped to significant lows recently.
CryptoQuant reports that miners disposed of most of their coins in mid-May during the most recent market crash.
Drawing reference from Glassnode data, Lex Moskovski, the CIO at Moskovshi Capital, noted that the “hodlers selling pressure is the lowest it’s been since November.” He added that such investors are “unwilling to sell at that price now.”
Moskovski concluded that this is a bullish indicator for the benchmark cryptocurrency.
Another indicator pointing to a bullish surge for Bitcoin is the Stablecoin Supply Ratio, which is currently low. Typically, when the SSR is low, it means that the amount of stablecoins lying idle on exchanges far exceeds that of Bitcoin’s, which means that there is immense buying power waiting to flow into BTC and other cryptocurrencies.
CryptoQuant further revealed that the SSR has recorded consecutive record lows for a week now.
Key Bitcoin Levels to Watch — June 3
Bitcoin has finally broken out of the consolidation range between the $37.5k and $36k levels, as bullish momentum flows into it. The primary cryptocurrency attempted the $39.5k barrier earlier today but met heavy resistance.
That said, the cryptocurrency appears to have completed a modest correction cycle from the $39.5K resistance and should attempt this level with more force over the coming hours.
Bulls currently have their focus on the $40,000 psychological level, as bears lose market dominance.
Meanwhile, our resistance levels are at $39,500, $40,000, and $40,500, and our key support levels are at $38,500, $37,500, and $37,000.
Total Market Capitalization: $1.75 trillion
Bitcoin Market Capitalization: $725.4 billion
Bitcoin Dominance: 41.4%
Market Rank: #1
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