Stablecoin Reserves Fall, Will Bitcoin Hit New ATH in October?
On-chain analyst expects BTC to hit new ATH soon
According to an analyst on CryptoQuant, stablecoin reserves are falling after peaking. Based on this and several other indicators, the analyst believes: “There is a high probability that we will see a new all-time high (ATH) for Bitcoin next October.”
If stablecoin reserves start to decline, it could mean that investors are now looking to enter the market. However, the decrease in this indicator can also be caused by large withdrawals to personal wallets.
The following chart shows how the value of stablecoin reserves has changed recently:
As the chart illustrates, the value of stablecoin reserves has recently hit a new high. This shows that these stablecoins are piling up on exchanges and investors are waiting for an entry point.
Fewer stablecoins on exchanges
Currently, this indicator has started to decrease. When such a drop occurs, the price of BTC will increase as these coins flow into the market.
The chart also includes two other indicators: the Bitcoin RSI and the stochastic RSI. RSI is used to gauge whether a coin is overbought or oversold.
A low indicator shows that BTC is currently oversold, while a high indicator shows it is overbought.
The analyst has indicated on the chart the areas where the RSI has dropped low, indicating a bottom. Based on this and the Stablecoin reserve indicator, the analyst believes: “October will be very positive for Bitcoin price.”
At the time of writing, the Bitcoin price is hovering around $45,700, down 4.8% over the past 24 hours.
If you compare the price of Bitcoin a month ago, the coin has now "evaporated" about $7,000 in value.