Bitcoin’s on-chain metrics are showing a potentially bullish signal despite the market’s continued downward pressure. According to CryptoQuant community analyst Maartunn, the Stablecoin Supply Ratio (SSR) for Bitcoin has fallen sharply into a zone that historically aligns with buy opportunities.
The SSR measures Bitcoin’s market cap relative to the total stablecoin supply. A lower SSR indicates higher stablecoin buying power, suggesting that investors may have significant liquidity waiting to re-enter the market. This metric is often used to gauge potential bullish momentum, especially when the broader market is under pressure.
Bitcoin SSR RSI Enters “Buy Zone” After Price Decline
In a recent analysis shared on X, Maartunn highlighted that the SSR RSI has dropped steeply following Bitcoin’s spot price decline. This indicates that stablecoin reserves remain strong compared to Bitcoin’s market valuation, creating what he describes as a “buy signal.”
Historical data shows that similar declines in the SSR RSI have often preceded market bottoms or short-term price rebounds. In several past cases, Bitcoin saw rallies shortly after the indicator entered this zone, although some reversals were temporary. Whether the latest signal will lead to a sustainable uptrend remains uncertain.
Dormant Bitcoin Wallets Activate as Old Coins Move
Adding to market tension, Maartunn also reported a significant movement of long-held Bitcoin. According to the analyst, 4,668 BTC aged between 3 and 5 years were just spent, marking a noticeable spike in dormant supply activation.
Such movement from older wallets often signals selling behavior, which can increase market volatility. Dormant-heavy spending typically appears during strong market changes or investor repositioning.
Bitcoin Price Hits $92,500 as Bearish Momentum Continues
Bitcoin’s decline shows no sign of slowing, with the price falling to $92,500 at the time of reporting. The combination of a major buy signal and increased dormant wallet activity has created a mixed sentiment among traders.
Some analysts believe the heightened stablecoin liquidity could trigger a rebound, while others caution that dormant wallet selling may weaken immediate recovery attempts.
For now, all eyes remain on whether the SSR buy signal will lead to a meaningful trend reversal or another short-lived bounce.