CryptoQuant provides an important indicator for Bitcoin in the coming week.

The on-chain analysis company CryptoQuant has just announced five important signals related to Bitcoin that investors should pay attention to in the coming week.

Bitcoin is observing important developments

In a recent post on platform X, CryptoQuant presented some on-chain signals of Bitcoin that need to be monitored in the context of prices being in a consolidation phase.

It seems that the value of this metric has increased in recent months | Source: CryptoQuant on XThe first index mentioned is the change in market capitalization of USDT, the leading stablecoin, over a 60-day period. As shown in the chart, this change has remained at a notably positive level, indicating that USDT is undergoing a phase of stable growth.

Stablecoins play an important role in providing capital for the cryptocurrency sector, therefore, their increase is often seen as a positive signal. Currently, the change in market capitalization of USDT has reached a value of 10 billion USD. “This is a clear sign that new liquidity is flowing into the market,” CryptoQuant commented.

Another indicator related to stablecoins that may affect Bitcoin is the Stablecoin Supply Ratio (SSR), which measures the ratio between the market capitalization of Bitcoin and the total market capitalization of all stablecoins. A low value of this indicator may be a positive sign, indicating that the purchasing power of investors using stablecoins is higher than the market capitalization of Bitcoin.

According to the chart below, the RSI index of BTC SSR is currently at 21, which is considered to be in the “buy” zone.

Data on BTC SSR RSI over the past few years | Source: CryptoQuant on XAnother positive sign forming for Bitcoin is the Demand from Accumulation Addresses, a metric that measures demand from addresses that have never sold any coins. Long-term HODLers are currently holding 298,000 BTC, marking a new record.

However, one indicator that remains in the bearish zone is the Exchange Flow Momentum Indicator (IFP). This indicator tracks the flow of BTC between spot and derivatives exchanges.

IFP BTC seems to have decreased for a while | Source: CryptoQuant on XIn the past few months, this indicator has shown a downward trend, considered a bear market pattern. “Watch closely: a bullish reversal often marks the beginning of upward momentum,” the analytics company emphasized.

Finally, the index mentioned by CryptoQuant is the Realized Price of short-term holders (STHs), which measures the average cost of Bitcoin investors who have participated over the past 155 days. In the recent downturn, STHs temporarily fell into loss, but this asset has recovered above their Realized Price of 109,775 USD. Bullish trends often continue when it trades above this level.

BTC price chart | Source: CoinphotonBitcoin has recovered back to the level of 116,200 USD after a recent surge in the past few days.

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