Important takeouts:
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The Stablecoin SSR RSI “buy” and demonstrates high purchasing power.
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The long-term Bitcoin holder has accumulated 298,000 BTC.
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Bitcoin’s Green September has historically preceded its fourth rally, earning an average profit of 78%.
Bitcoin (BTC) was whipped until September, but managed to rise 5% at $114,000 on Tuesday.
Analysts say some key metrics now suggest that the recent recovery from $108,000 could indicate a “big move” ahead.
Bitcoin stablecoin metric signal “Purchase”
The Stablecoin Supply Ratio (SSR), which measures the purchasing power of Stablecoin compared to Bitcoin, is declining as its relative strength index (RSI) reaches its lowest in four months.
Related: The view of professional bittraders on BTC’s flash crash has now reached $112.6K: Has anything changed?
Bitcoin “SSR RSI is 21 years old and is in the realm of “purchase”,” Onchain Data Provider Cryptoquant partially said in the X thread on Tuesday.
The last time the RSI was at this level, coinciding with the bottom of the BTC price falling below $75,000, ahead of the 67% rally, at $124,500 ahead of its current high.
A lower SSR suggests there is more “purchase power.” This is strengthened by the ever-expanding Stablecoin Supply, indicating increased liquidity and investor confidence.
For example, Tether USDT (USDT) has a market capitalization of over 10 billion USDTs in the past 60 days, making them consistently climbing.
“This is a clear indication that fresh liquidity will enter the market,” Cryptoquant said.
“The increased supply of staple love coins is a strong tailwind in the bull market.”
Additionally, long-term Bitcoin holders continue to cultivate stashes at these accumulation addresses, which hold a record 298,000 BTC. This trend suggests they are optimistic about the possibility that Bitcoin will continue to rise.
“These signals could shape the next big move for Bitcoin,” concluded Cryptoquant.
BTC price flashes on bottom signal
As reported by Cointelegraph, some on-chain and technical metrics suggest that a decline to $108,650 last week may have marked BTC’s local bottom.
Analytics platform SwissBlock said the Crypto market is being reset based on aggregated impulse signals.
A few weeks ago, the metric fell from over 100% to 20%.
“At that exact point, the impulse signal collapses to zero, the moment when a panic exhaust and a new buyer intervened,” the company explained.
SwissBlock emphasized that this reset has only happened three times since early 2024, with each instance marking a sustained recovery in Bitcoin prices following “cycle bottom.”
“We’re approaching that setup again.”
Bitcoin avoids the third year of “Red September”
Bitcoin extended its winning streak with a positive average return in September. This was historically known as the worst month or “Rektember.”
September will offer a minimum monthly Bitcoin return of -3% over the 13 years starting from 2013.
However, over $114,000 on Tuesday marked a rare bullish end through September. This is a scenario where the historically significant fourth quarter profits continued (see diagram below).
Popular analyst Mikybull Crypto said in an X post Wednesday.
“Whenever $BTC closed the green in September, it was usually a large gathering that followed the fourth quarter.”
Additionally, the period from October to December is the best quarter for a Bitcoin price rise with an average increase of 78%.
Looking at the recent fourth quarter, BTC rose by around 48% in 2024, 57% in 2023 and 480% in 2013.
If history can be anything, BTC prices can see the biggest profits of the current bull cycle over the next three months.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.