According to a new Bitcoin parameter (BTC), investors are more interested in buying than selling at $10,000.
Ki Young Ju, founder of the on-chain analysis platform CryptoQuant, recently unveiled on Twitter his latest tool to predict the future moves of Bitcoin traders.
CryptoQuant: intense sales pressure for BTC
Called „Potential BUY/SELL Pressure“, this instrument examines BTC’s exchange reserves and divides them by stablecoin reserves. The resulting figure should give a general idea of investors‘ desire to buy or sell: Currently the trend seems to be bullish.
In particular, Ki Young Ju has written:
„BTC still enjoys intense buying pressure. Exchanges hold more stablecoins and less BTC than at the beginning of this year.
I think there is still room for a bullish trend from Bitcoin.“
However, Ki pointed out that this parameter has some flaws. Traders on exchanges could use stablecoins to buy different cryptocurrencies from Bitcoin, or simply hold Tether (USDT) to buy at lower prices in the future.
Stablecoin boom, BTC reserves on falling exchanges
The exchange scenario is changing rapidly after the last Bitcoin Rush contraction. Tether, the most important stablecoin, has surpassed a capitalization of $14 billion: some recent data suggests that investors plan to use the stablecoin to buy BTC at lower prices.
Glassnode’s Stablecoin Supply Ratio (SSR) was in fact three times higher at the end of August compared to June 2019, the last time the BTC/USD pair was traded for $11,400.
At the same time, confirms Ki itself, the BTC reserves of the exchanges continue to decrease, demonstrating the desire of investors to hold and not sell their Bitcoins.