Bitcoin [BTC] takes a trip back to the COVID era – Here’s how

• The buy/sell ratio of buyers is increasing, which indicates the neutralization of the sell-off.
• The stablecoin supply ratio has declined, suggesting the market has refrained from buying BTC.

Recent price movements of Bitcoin [BTC] have drawn comparisons to the volatile time during the outbreak of the COVID-19 pandemic. Often viewed as a store of value and a hedge against economic uncertainty, Bitcoin experienced significant price swings between 2019 and 2021, and these price swings laid the groundwork for its all-time high (ATH) of $69,000 in 2021.

To read Bitcoins [BTC] price prediction 2023-2024

BTC: Back to the pandemic

Korean on-chain analyst Mignolet did not hint at a possible move for a price hike in his latest CryptoQuant publication. Instead, he used the buy/sell ratio to explain the similarity between Bitcoin’s consolidation in this cycle and from now on.

The Buy/sell buyers The ratio is calculated as buying volume divided by selling volume at perpetual swap dealers. When the ratio is above 1, it means that bullish sentiment prevails. On the other hand, values ​​below 1 indicate a pessimistic mood.

According to Mignolet, buyers’ buy-sell ratio skyrocketed like April 2023. The analyst stressed that BTC has consolidated around this price due to the sudden surge. However, months later, widespread whale participation sparked the price surge. So will it be the same this time?

Source: CryptoQuant

Recently, bitcoin has been consolidating between $25,000 and $26,000. This has been the case since the sharp sell-off a few weeks ago. However, taking into account the seller exhaustion constant, Glassnode showed that it has risen to 0.0078.

The Seller exhaustion constant uses the percentage of profit offer and 30-day price volatility when there are big losses or low-risk bottoms. In order to confirm higher and higher losses, the seller’s exhaustion constant and supply must be balanced in profit.

However, as of this writing, while the bid percentage of profits was decreasing, seller exhaustion was steadily increasing. This was a sign that the Seller control had lost weight. Therefore, BTC is not expected to drop significantly.

Source: Glassnode

Consolidation because…

And there was one lack of buyers In the market, the coin would continue to move only around the above values.

Another indicator that confirms the decline in purchasing power is the Stablecoin Supply Ratio (SSR). This metric is defined as the ratio between Bitcoin supply and stablecoin supply denominated in BTC.

How many are 1.10.100 BTC worth today?

When the SSR is low, the current stablecoin supply has more buying power to buy BTC. As an indicator of the supply/demand mechanisms between BTC and USD, a drop in SSR as at press time suggests a drop in purchasing power.

Source: Glassnode

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