Bitcoin SSR Flashes Buy Signal: Rebound Incoming?

On-chain data shows the Bitcoin Stablecoin Supply Ratio has declined into the buy territory. Here’s what followed this signal in the past.Bitcoin SSR RSI Is Giving A Buy SignalIn a new post on X, CryptoQuant community analyst Maartunn has talked about the latest trend in the Stablecoin Supply Ratio (SSR) for Bitcoin. The SSR is an indicator that measures how the market cap of BTC compares against the total supply of the stablecoins.Stablecoins refer to cryptocurrencies that are pegged to a fiat currency. Investors generally park their capital in the form of these assets when they want to avoid the volatility associated with BTC and other assets.Such holders also usually eventually invest back into Bitcoin and company, however, exchanging away their stablecoins in favor of them once they feel the time is right. Because of this reason, the stablecoin supply is often looked at as a sort of “available buy supply” in the cryptocurrency sector.When the value of SSR is high, it means BTC’s value is high compared to the stablecoin supply. Such a trend suggests the market stablecoin buying power is low, which could be a bearish sign.On the other hand, the indicator being low implies the sector may have a high amount of dry powder available relative to the Bitcoin market cap, which can naturally be bullish.Now, here is the chart for the BTC SSR shared by the analyst that shows the trend in its Relative Strength Index (RSI) over the last couple of years:As is visible in the above graph, the Bitcoin SSR RSI has witnessed a decline recently as the BTC spot price has crashed. This suggests that there may be a high amount of stablecoin buying power available in the market now.The indicator’s drop has been so steep that it has entered into a zone that Maartunn has flagged as pertaining to a buy signal. From the chart, it’s apparent that past instances of this signal have often coincided with some sort of bottom or led into a price surge.In a lot of the instances, however, the signal has only resulted in a temporary reversal. It now remains to be seen whether any bullish shift will follow the latest signal, and if one does, whether it will be lasting.In some other news, a large movement involving dormant tokens has just occurred on the Bitcoin network, as Maartunn has pointed out in another X post.“4,668 $BTC aged 3–5 years were just spent — a clear spike in dormant supply activation,” noted the analyst. Movement from dormant hands is often a sign of selling.BTC PriceBearish momentum hasn’t shown any signs of stopping for Bitcoin as its price has now dropped to the $92,500 level.