Stablecoin data and a key Bitcoin price metric suggest that BTC price could rally toward $25,000 this week. noshitcoins explains.
) rallied 11% between Jan. 20 and Jan. 21, reaching the $23,000 level and shattering bears' expectations for a pullback to $20,000. Even more notable is the move brought demand from Asia-based retail investors according to data from a key stablecoin premium indicator.
Another bit of bullish information came on Jan. 20 after U.S. Federal Reserve governor Christopher Waller reinforced the market expectation of a 25 basis point interest rate increase in February. A handful of heavyweight companies are expected to report their latest quarterly earnings this week to complete the puzzle, including Microsoft, IBM, Visa, Tesla and Mastercard.
Excessive buying demand tends to pressure the indicator above fair value at 103%, and during bearish markets, the stablecoin's market offer is flooded, causing a 4% or higher discount.Currently, the USDC premium stands at 103.5%, up from 98.7% on Jan. 19, signaling higher demand for stablecoin buying from Asian investors. The movement coincided with Bitcoin's 11% daily gain on Jan. 20 and indicates moderate FOMO by retail traders as BTC price approached $23,000.
Interestingly, top traders at OKX reduced their net longs until Jan. 20 but drastically changed their positions during the latest phase of the bull run. Looking at a longer 3-week time frame, their current 1.05 long-to-short ratio remains lower than the 1.18 seen on Jan. 7.Bears are shy, providing an excellent opportunity for bull runs
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