The release of the United States’ December Consumer Price Index (CPI) statistics has prompted a wild swing in the price of Bitcoin (BTC). After witnessing a minor drop of 2% within minutes of releasing the CPI data-which came in at 6.5%-the BTC price experienced a significant increase of 6.7% in the next six hours.
Although the current increase is only the beginning of the upswing, it still needs to overcome a major hurdle at the $19,248 level. The bullish outlook will only be maintained if bulls are able to overcome this resistance. Failing to do so might result in a steep correction, which is considerably more likely to occur.
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According to information acquired by CryptoQuant, the Stablecoin Supply Ratio (SSR) shows a value over 75, which has historically proven to be an indication to sell. The term “Stablecoin Supply Ratio” (SSR) refers to a ratio that is calculated by dividing the total market capitalization of all stablecoins by the market capitalization of Bitcoin. By comparing the two currencies’ respective market caps, it demonstrates how powerful Bitcoin and stablecoin both currently are relative to one another.
On the other hand, it’s been seen when the SSR value comes out to be less than 25, it tends to be a potential entry point for purchase. To put it in perspective, a high value indicates that comparing the available supply of stablecoins to the total value of Bitcoin on the market is indicative of possibly low buying pressure and a prospective price reduction. Low numbers indicate that there is a high supply of stablecoin relative to the market capitalization of BTC, which indicates that there may be potential buying pressure and a possible price increase.
Although this doesn’t mark a major trend reversal and Bitcoin may still climb towards breaching the psychological level of $20,000, an SSR of below 40 can be expected in the months to come. According to a prominent cryptocurrency trading expert Rekt Capital, anything below the $20k mark would be a worthwhile purchase.
As things stand, the Bitcoin (BTC) price is currently being traded at $19,253. This represents an increase of 1.50% on the day, in contrast to a gain of 6.37% during the week as per CoinGape’s crypto market tracker.
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