The current Bitcoin market remains predominantly bearish after experiencing a 2.41% loss in the past week. Despite stabilizing around $68,000, Bitcoin is still 46% below its all-time high of $126,100 set in late 2025.
Is Bitcoin Bullish or Bearish? Deciphering SSR Liquidity Signals
In a recent post on the CryptoQuant platform, an analyst known as MorenoDV explained how the Stablecoin Supply Ratio (SSR) serves as a liquidity indicator for Bitcoin and why the current level of around 9.5–9.6 is significant.
SSR measures the relationship between Bitcoin’s market cap and stablecoin supply, indicating the amount of available buying power in the market. A high SSR suggests that Bitcoin’s market cap is significant compared to stablecoins, resulting in less sidelined buying power. On the other hand, a low SSR indicates that stablecoin supply is relatively strong compared to Bitcoin, indicating more potential buying power.
According to MorenoDV, the SSR is not a straightforward bullish or bearish indicator; its significance depends on the direction in which the market approaches the 9.5 level. A decrease in SSR towards 9.5 from higher levels typically indicates strengthening stablecoin liquidity, which has historically supported or reversed Bitcoin’s price in previous cycles.
Conversely, an increase in SSR towards 9.5 from lower levels suggests diminishing liquidity, often preceding local tops and short-term corrections.
MorenoDV describes the 9.5 level as a liquidity equilibrium zone that can act as support or resistance based on market dynamics. Traders will closely monitor stablecoin inflows to determine if they remain consistent or if there are signs of impending liquidity exhaustion, indicated by a rejection at this critical zone.
Bitcoin Price Analysis
At the time of writing, Bitcoin is priced at approximately $68,840, reflecting a 3.97% increase in the past 24 hours. However, daily trading volume has decreased by 15.3% to $37.33 billion. The Fear and Greed index, according to Coincodex, is at 9, indicating extreme caution among investors.
Nevertheless, Coincodex analysts and investors are expected to adopt a more bullish outlook, with projections pointing to a target of $73,769 in five days and $77,687 in a month. A three-month target of $72,480 suggests some retracement levels following the initial surge, aligning with a typical ascending pattern.
Image credit: XVerse, chart provided by Tradingview.com
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