Market analysts said Bitcoin’s (BTC) upside remained intact despite the 2.5% correction from its multi-month high of $82,800 reached on May 6.
Key takeaways:
Bitcoin has successfully re-entered expansion territory as the Bull Market Support Band turned to support.Bitcoin’s Stablecoin Supply Ratio has recovered from historic lows, indicating fresh liquidity is returning.Bitcoin’s spot taker CVD flips positive, suggesting real spot demand is back
Bitcoin’s price momentum is expanding
Private wealth manager Swissblock stated that Bitcoin is “still at full momentum,” despite the slight correction from recent highs.
Swissblock said that the latest rally saw the Bitcoin price momentum “successfully reignited and pushed back into full expansion territory.”
Related: Bitcoin funding rates turn positive: Is BTC rally to $85K next?
Bitcoin is now consolidating inside the cost-basis battlefield, with the true market mean and the short-term holder cost basis around $80,000 acting as support and the active realized price at $85,000 as resistance.
Meanwhile, “momentum remains structurally strong,” the wealth manager said, adding:
“As long as momentum stays above the transition area, bulls retain control.”
Bitcoin price momentum. Swissblock
Echoing this observation, analyst The Great Mattsby pointed out that Bitcoin’s Bull Market Support Band has now turned into support, while the 21-week exponential moving average has crossed back above the 20-week simple moving average.
“The trend has officially flipped back to bullish.”
BTC/USD weekly chart. Source: X/The Great Mattsby
Bitcoin liquidity signals “strong recovery”
The Stablecoin Supply Ratio (SSR) has recovered from its lower historical range below 10, the same zone that marked market bottoms in mid-2021, 2022 and mid-2023.
Each time the SSR recovered from these lows, Bitcoin broke out of range and staged a strong rebound, as shown in the chart below.
Bitcoin Stablecoin Supply Ratio: Source: CryptoQuant
The recovering SSR suggests that stablecoin liquidity is returning to exchanges again, potentially setting the stage for another bull run for BTC…
..
