Bitcoin's recent 12 percent price move has already retraced back to eight percent daily growth. The price has moved back under the strong resistance and, in addition to that, we can see some alarming on-chain data provided by Glassnode studio.
What does high value on SSR mean?
According to the data provided, the current Bitcoin run is not backed by strong buying power. At this point, the Stablecoin Supply Ratio (SSR) is continuously showing an increasing number, which means that traders are not choosing Bitcoin over stable assets.
If the indicator ratio goes down, the Bitcoin buying power rises since funds are flowing out of stable assets back into volatile ones. Even though we have witnessed a strong ascending price move, the most buying power that affects oscillators like the stablecoin supply ratio usually comes from large institutional traders and not individual investors.
Why aren't traders buying Bitcoin back?
The SSR is currently reflecting the situation on the Bitcoin daily chart, which has retraced back under strong resistance. From the beginning of the day, Bitcoin lost around four percent of its value. The resistance that Bitcoin is currently failing to break through is the 200-day exponential moving average, which is the determination line for the trend direction. Usually, if the price goes above that resistance, it is considered the beginning of an uptrend.
Since the biggest cryptocurrency has not yet taken hold above the mentioned resistance line, traders will not start accumulating Bitcoin in their wallets.