Bitcoin Nearing Resistance? Stablecoin Ratio Suggests Short-Term Risk

This key metric tracks how capital is flowing between stablecoins and Bitcoin, offering powerful insight into market sentiment and liquidity dynamics.

Short-Term Risk Builds Around $113K–$114K

Alphractal notes that the short-term Stablecoin Ratio has entered a higher-risk zone, which historically precedes local tops or temporary pullbacks. The warning comes just as Bitcoin tests the $113,000–$114,000 resistance area, a level that could prompt increased rotations from BTC into stablecoins as traders take profits.

A higher stablecoin ratio generally means more investors are shifting funds out of BTC, hinting at potential price pressure.

Long-Term Trend Remains Bullish

Despite the short-term caution, the long-term Stablecoin Ratio Channel tells a different story. The metric is currently midway through its historical cycle, a zone that has often acted as temporary resistance during past bull markets — not as a final top. 

Alphractal highlights that in bull phases, this mid-range typically leads to healthy corrections followed by continuation. However, in bear markets, it has previously served as a distribution zone before extended declines. Right now, the long-term signal suggests Bitcoin still has room to grow — but with some volatility likely in the near term.

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Conclusion

In the short term, BTC may face resistance near $113K due to increasing stablecoin ratio pressures. But from a macro perspective, the bull cycle could still have legs, depending on how liquidity flows evolve. According to Alphractal, a brief correction may be necessary — but not terminal — as BTC continues to build toward its next leg higher.

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