BTC volumes on exchanges indicate that the coin is ready to rally
Stablecoin Inflow Data Confirms Whale Readiness for Bullish Attack
From a technical point of view, the critical resistance is at $ 11,000
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Major cryptocurrency investors are gearing up to buy bitcoins on the downturn following the recent crash below $ 10,000, as evidenced by data on stablecoin inflows to leading cryptocurrency exchanges. This dynamic could signal that whales are preparing to buy near a critical support zone..
For reference: stablecoins – Stablecoins – literally translated from English – continue to gain popularity in the digital asset market. With … More is a digital asset, the value of which is tied to the value of one of the fiat currencies, for example, the dollar, euro or yen. Some stablecoins are pegged to gold or a basket of currencies. Such coins have the advantages of digital money and allow you to quickly and cheaply transfer value, but at the same time they are devoid of the excessive volatility inherent in crypto coins..
Read about where you can profitably buy the USDT stablecoin in our article.
Using fiat to buy cryptocurrency is long, expensive, and inconvenient. Moreover, not all exchanges allow transactions in crypto-fiat pairs. Therefore, crypto traders keep a certain stock of stablecoins on cold wallets in order to be able to quickly respond to changing market conditions and, for example, buy additional coins when the price falls to attractive levels..
Bitcoin bulls prepare to strike back
According to statistics provided by the CryptoQuant analytical service, BTC stocks on leading cryptocurrency exchanges are significantly decreasing, while stablecoin stocks are growing steadily. The overweight towards stablecoins is often considered a bullish signal for bitcoin, as traders usually transfer stablecoins to exchanges to buy other crypto assets..
According to the head of CryptoQuant, Ki-Young Joo, the ratio between BTC and stablecoin holdings on cryptocurrency exchanges reflects growing pressure from sellers or buyers. Now, the advantage towards stablecoins means that the bulls are ready to launch a decisive attack and stop the dangerous BTC correction..
#BTC still have intense buy pressure. Exchanges are holding more #stablecoins and fewer #BTC compared to the beginning of this year.
I think we still have room for #BTC bullish trend. (Disclaimer: People can buy other coins with stablecoins tho) https://t.co/ONpGJoy840 pic.twitter.com/Zrh1RdFXc3
– Ki Young Ju 주기영 (@ki_young_ju) September 7, 2020
Santiment’s data on stablecoin inflows to exchanges supports the theory that bitcoin whales are plotting a massive bullish attack. Specifically, on September 4, when Bitcoin recovered to $ 10,500 after falling below $ 10,000, there was a sharp surge in USDT receipts on centralized exchanges. During the day, the indicator jumped to $ 130 million compared to the average value for the previous days of $ 30 million. Similar dynamics were observed for other stablecoins, including DAI, BUSD, Gemini and USDC..
Data on USDT inflows to centralized exchanges. Source: Santiment
My EXACT Investing Strategy: Why I’m ONLY Buying Bitcoin Right Now! Warning To All Crypto Investors!
Earlier, the editorial staff of BeInCrypto reported that miners began to enter bitcoins on exchanges. It ended badly.
Technical picture for BTC
Technically speaking, BTC / USD is still in a tight range of $ 9800 – $ 10,500. Steady movement in any direction will help create powerful momentum. Critical support is at $ 9000, and if the price starts to fall again after the current consolidation, then this barrier will slow down the onset of bears and create the preconditions for a new bullish wave.
Meanwhile, a rise above $ 10,500 will accelerate the recovery to $ 11,000, a breakout of which will confirm the development of a bullish scenario with further growth to $ 12,000.
BTC / USD daily chart. Source: TradingView
Read a detailed technical analysis for BTC / USD here.
Thus, data on stablecoin stocks, as well as on the inflow of coins to exchanges, suggests that the coin may be ready for a strong bullish rally, which will be confirmed by a steady movement above $ 11,000..
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