Bitcoin (BTC), Cryptocurrency, News

Price Of Bitcoin Breaks Above $49,000 To Set New ATH

On Valentine’s Day (on February 14th), BTC hit a new high over $49,000, rising to as much on Coinbase as $49,344. There are two big reasons why Bitcoin has emerged to an all-time high, which are namely high stable coin inflows and a clean break of the resistance zone of $38,000.

The High Stable Coin Inflow Was Significant

Overnight observers noticed the continuous increase in stable coin flows amid Bitcoin’s consolidation below $38,000 over the last few days.

The Secure Coin supply ratio (SSR) increased significantly from mid-$30,000, according to data from CryptoQuant, the data analytics platform. The SSR metric indicates the ratio of Bitcoin’s market cap to stable coin’s aggregate market cap.

If Bitcoin price rises in accordance with the SSR ratio, it will possibly result in a return to market-powered by seamless money. The pattern is particularly positive as it illustrates that the rally was not only driven by an overly manipulated future demand. Indeed, the trend was driven by a genuine spot market demand.

In addition, analysts showed that selling pressures from miners have declined over the high stable coin ratio. The combination of miner’s reduced selling pressure and exchange’s raising stable coin inflows has catalyzed the Bitcoin rally.

A Clear Break At The $38,000 Resistance

For a long period of time, Bitcoin consolidated under the $38,000 area of resistance. This posed a challenge to Bitcoin’s short-term bull cycle. As Bitcoin price floats long under the main resistance area, the likelihood that BTC will fall to a smaller resistance area to catch lower liquidity is increased.

Partly because of this, Bitcoin fell to about $44,000 on an ongoing recovery above the figure of $38,000. Even though the futures market remains heavily leveraged and overpowered, despite the possibility of the long squeeze, BTC was able to push the resistance zone.

There are many explanations for the rally to be sustainable in the near future. Firstly, the inflow of stable coin doesn’t decrease. Secondly, the bullish market framework has now been turned into a positive short-term pattern across lower time periods.

As Bitcoin stays above the levels of $38,000, which have become a support zone, it will remain intact in its short-term bullish market structure.

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