After a slow weekend where the price more or less remained unchanged, Bitcoin made a move today, giving new bullish targets.
There might be a reason for that, according to analysts at CryptoQuant.
Earlier today, CryptoPotato reported that Bitcoin’s price appeared stuck around $55K despite the volatility during the weekend.
However, being the beginning of a new week, Monday saw positive developments in regards to the price, as BTC soared around $3,500 in a matter of hours, poking above $58K.
From a technical perspective, this revealed a couple of things. First, it showed that there is significant demand below $55K as bulls didn’t let the price rest there for a long time. The dips got scooped, and the recovery was relatively quick.
Second, BTC is currently battling a major resistance level at the area between $58,000 and $58,350. This is the previous ATH from February 21st (at $58,350), and it’s also marked by a descending trend-line, meaning that it’s to be considered. In any case, above this, the next target appears to be $60K.
Few things happened today that could have acted as catalysts for the most recent gains. First, the world’s largest payment processor, Visa, announced that they will be settling USDC transactions on Ethereum. While it might seem like a headline that would prompt gains in ETH, the truth is that it’s an announcement that drives the entire cryptocurrency industry forward.
And we all know that Bitcoin is this industry’s frontrunner. It has dictated the direction of the market for the largest part of it, and there are no signs of this slowing down any time soon.
In any case, crypto analytics provider, CryptoQuant, revealed that the total amount of stablecoins on exchanges has recently reached an all-time high.
Chart: CryptoQuant
This means that there’s currently plenty of sidelined capital on exchanges. In addition to that, the analysts also provided another metric – the stablecoins ratio. This measures the number of bitcoins compared to the amount of stablecoins sitting on exchanges. It’s currently at a low that we haven’t seen since last November.
This is another strong sign because it means that there’s no significant selling pressure.
Image: CryptoQuant
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