Significance of USDT and USDC for Bitcoin and USD 100,000 price movement

After peaking at $ 69,000 on November 10, Bitcoin has fallen 15% in the past 10 days to get back below $ 60,000.

Bitcoin price 4-hour chart | Source: Tradingview

While BTC even hit a low of $ 55,600 yesterday, the market is aiming for a recovery for now and a specific trend from USDT could support an immediate uptrend. This article analyzes current movements in the stock market to understand the role of stablecoins.

Input line USDT giant help Bitcoin recover over $ 57,000

follow mood, the stream of stablecoins flowing into the exchange in the past 24 hours is huge. The data shows that over 770 million USDT were transferred to the platforms within a few hours – the highest inflow for this stablecoin.

USDT (purple) and USDC (red) inflows into the exchange | The source: Mood

A similar situation occurred at USDC, with more than $ 454 million in transfers hitting a 4-month high. From this it can be deduced that these cash flows are the result of a possible “buy-dip” action. Looking at the graph, the same height of the USDT peak at the end of September also triggered the bull run in October.

While this is a sign of a strong market recovery, suggesting buying pressure, other variables need to be assessed for a more holistic view.

SSR confirmed Support of Stablecoins

The SSR ratio is the ratio between the supply of Bitcoin and the supply of stablecoins, expressed in BTC. Whenever the SSR is low, it usually indicates that traders are using stablecoins to buy more BTC.

Rate SSR | The source: Glass knot

According to the graph above, the SSR rate was high in the first half of 2021, but has been falling since then. After hitting a July low, it is now showing a change in supply-demand dynamics.

In conclusion, SSR is showing bullish signs with massive inflows and Bitcoin has the right background to trade higher on the charts in the near future.

Catalysts is different?

MVRV rate | The source: Mood

Due to the 365-day MVRV ratio analysis, Bitcoin remains in the investment zone as it has not yet reached the level of Q2 / 2021. The long-term trend remains bullish for Bitcoin, but the charts will have to change sentiment if the price is to rebound.

volatility

Commentator and analyst Anthony Pompliano has tweets:

“In times of uncertainty, it is important to compare volatility.”

Asset Class Volatility | The source: Anthony Pompliano

Bitcoin’s volatility is about 7 times higher than that of the S&P 500. BTC rose 12%, SPY rose 1.7%. David Lawant, Research Analyst at Bitwise, confirm:

“These are not uncommon: since 2014, SPY has increased by more than 1.7% or less -1.7% in 141 of the 1978 meetings (7.1% of the total).”

However, these digital assets have the upper hand over stocks. Lark Davis repeated the same optimistic view in a tweets.

“I believe that crypto will continue to be very bullish in 2022, with a lot of volatility. Then we see a big bear market, but much flatter and shorter than the bear market of 2018. “

United States of America$ 100,000 resistance in 2022

Mike McGlone, Director of Commodity Strategy at Bloomberg Intelligence, believes BTC will have an upward momentum over the next year despite temporary corrections. According to him, “BTC is likely to face resistance at $ 100,000 and $ 50,000 will act as support”.

The source: Bloomberg Intelligence

“Bitcoin bulls and USD 50,000 support against USD 100,000 resistance in 2022. Bitcoin goes into a bull market in 2022. As the supply decreases, more and more young technologies / assets are adopted and show signs of maturity.”

Increasing acceptance and decreasing supply will be the key factors for the promising success of BTC. Despite the recent price decline, the analysts remain optimistic.

Before that was McGlone suspect Bitcoin will trade at $ 100,000 for the coming years. He noted that any correction is short-term, which creates the conditions for a potential Bitcoin bull run.

The source: Mike McGlone

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Minh Anh

According to AZCoin News

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