Bitcoin’s price could be headed for a leg up according to the stablecoins sitting on exchanges and the negative crypto sentiment.The amount of stablecoins on exchanges has surpassed the number of bitcoins. Combined with the entire crypto sentiment and the enhanced BTC withdrawals from trading platforms, the price of the underlying asset could be primed for a boost.Stablecoins Ratio MACD Suggests a Leg Up for BTCAccording to data from the crypto analytics resource CryptoQuant, the Stalebcoins Ratio MACD indicator has gone into a more bullish state for bitcoin. The metric follows the amount of BTC reserves in USD divided by the stablecoins reserves across all digital asset exchanges.Or, as the analytics company says – the Stablecoins Ratio MACD provides a general picture regarding the selling pressure on trading venues.As of now, the firm outlined the high number of stablecoins compared to BTC holdings stored on exchanges. Previously, the correlation between the two has led to significant price movements in either direction.
For instance, the 2020/2021 bull run started in September last year – at the time, the stablecoins were significantly more on exchanges than bitcoins.
In contrast, the number of BTC superseded that of stablecoins in early 2021 when the primary cryptocurrency retraced by several thousand dollars.Keeping this in mind, CryptoQuant said bitcoin has “enough bullets to go up” now. In the past few days, BTC has recovered $10,000 and jumped to $40,000.This came after the most violent market-wide correction in USD terms in which bitcoin nosedived from $50,000 to $30,000 following negative news from Tesla and China.It’s worth noting that investors deposited significant quantities of their BTC holdings to exchanges amid the most violent days of the crash. However, they have started to withdrawal substantial amounts since then and the bitcoins sitting on trading platforms have decreased notably in days.Fear and Greed SupportsBy comparing various data, including volatility, volume, surveys, and social media interactions, the Fear and Greed Index summarizes the investors’ general sentiment on the space. It ranges from 0 (extreme fear) to 100 (extreme greed) to determine whether the mood is negative or positive.However, much like the Stablecoins Ratio MACD, it usually provides a market top or bottom. When the Index goes to extreme greed, prices start to retrace and vice-versa.It was well above 75 in mid-April when bitcoin topped $65,000 for its latest ATH. Shortly after, the cryptocurrency began its gradual decline.Now, the Fear and Greed Index is in an “extreme fear” state (at 22) for over a week – ever since BTC dumped to $30,000. As such, the asset price could indeed be heading further north if history repeats itself.