Stablecoins Ratio hits 2024 low – Is Bitcoin Ready for $100,000?

• Bitcoin’s stablecoin influx hints at growing buying power and potential price breakout
• A 36% increase in short-term holders’ “HODL” behavior strengthens Bitcoin’s upward potential

Bitcoin [BTC] has recently been trading within a narrow range, with resistance at $98,804 and support around $94,603. However, emerging on-chain signals suggest that the leading cryptocurrency could be gearing up for a significant upward move.

Notably, the Exchange Stablecoins Ratio has seen a sharp decline, pointing to an increase in buying power on exchanges. This shift in market dynamics has sparked speculation that Bitcoin may be poised for a rally, potentially breaking through its current price range and moving toward new highs.

As the market braces for potential growth, investor sentiment is growing increasingly optimistic.

A look into BTC’s performance

Bitcoin’s recent trading range reflects a consolidating market, with price struggling to breach the $98,804 resistance level while holding firm above $94,603 support.

The daily RSI at 61.41 suggests moderately bullish momentum, though a clear breakout signal remains absent. Notably, trading volumes have shown minor declines, indicating a cautious market awaiting a decisive move.

Source: TradingView

OBV maintains an upward trajectory, highlighting sustained buying pressure despite price stagnation. This divergence between price and OBV hints at latent bullish potential.

Furthermore, the Exchange Stablecoins Ratio’s decline reinforces this outlook, suggesting a buildup of purchasing power on exchanges.

A breach of the $98,804 resistance could catalyze a push toward $100,000, but failure to maintain momentum risks a revisit to lower support levels.

Exchange stablecoins ratio and hodling impact

The Exchange Stablecoins Ratio, now at 0.000060, its lowest level in 2024, underscores significant buying power on exchanges. This metric reflects the growing supply of stablecoins relative to Bitcoin, signaling that investors are well-positioned to acquire BTC.

Historically, such conditions have preceded bullish price action as demand outpaces supply.

Source: CryptoQuant

Additionally, the rise in hodling behavior among short-term Bitcoin holders is a notable factor. CryptoQuant data shows a 36% increase in their average holding period over the past month.

Source: Into The Block

This reduces immediate selling pressure, fostering scarcity in the market and strengthening price stability.

Together, these dynamics – low Exchange Stablecoins Ratio and heightened holder confidence – enhance Bitcoin’s potential to break past $98,804 resistance, with $100,000 increasingly within reach.

What to expect from Bitcoin?

At press time, Bitcoin was trading at $95,323, slightly below its key resistance level of $98,804. The influx of stablecoins on exchanges, reflected in the low Exchange Stablecoins Ratio, suggests significant buying power that could drive demand.

If short-term holders maintain their “HODL” strategy and investor sentiment remains optimistic, Bitcoin may overcome this resistance and edge closer to the psychological $100,000 mark.

Read Bitcoin’s [BTC] Price Prediction 2024–2025

However, any increase in selling pressure could see BTC consolidating within its current range or retracing to its critical support level of $94,603 before attempting another breakout.

The market’s trajectory hinges on whether demand sustains its momentum in the coming sessions.