Cryptocurrency analytics firm Alphractal has issued a bullish signal for Bitcoin, citing a key indicator that suggests an optimal accumulation phase is approaching.
Stable Value of the Stablecoin Rate Channel
In a recent statement, the company provided important information about the Stablecoin Rate Channel, a metric that has historically identified strong buying opportunities for Bitcoin and altcoins. Alphractal noted that the total market capitalization of stablecoins has been steadily increasing due to new issuances and capital rotation from altcoins to stable assets.
Channel Analysis and Its Importance
As the firm's analysts explained, when the stablecoin reaches the lower dotted line of the Rate Channel, it historically signals an excellent entry point for investors. The long-term channel is designed to smooth out short-term volatility using the 90-day Relative Strength Index (RSI) applied to the Stablecoin Supply Ratio (SSR) Oscillator and further refined with a 7-day Exponential Moving Average (EMA).
Current Situation and Forecast
The current setup closely resembles previous accumulation zones that preceded Bitcoin price increases. Although the exact timing remains unclear, analysis points to a rapid approach of an ideal accumulation phase.
Alphractal concludes that while a major buy signal has yet to materialize, historical trends indicate the rapid approach of an optimal Bitcoin accumulation phase.
