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Bitcoin Targets $124,000: What to Expect from the Cryptocurrency’s Price
The supply of stablecoins has sharply increased to levels typical of a bear market. CryptoQuant analyst MorenoDV believes that this may be followed by a new rally in Bitcoin (BTC) and the broader digital asset market.
A Turning Point for Bitcoin
The Bitcoin-to-stablecoin ratio has reached levels that historically marked bottoms for the coin.
The Stablecoin Supply Ratio (SSR) has fallen again to the “lower historical zone (13) — the same level that marked the bottom in mid-2021 and throughout 2024,” the analyst noted.
“Each time Bitcoin traded calmly before making a strong rebound,” he said.
Bitcoin and Stablecoin Supply Volume. Source: CryptoQuant
The expert added that a low SSR is a signal of growing stablecoin liquidity.
This could lay the groundwork for a recovery rally or a decisive bullish breakout in the current cycle.
The Bitcoin-to-stablecoin reserve ratio (SRR) on Binance shows a similar pattern.
The chart below reveals that stablecoin reserves on the exchange are rising while BTC balances are declining.
“This is a pattern that has appeared right before market recoveries.
We’re observing a liquidity configuration that has only occurred a few times since 2020,
and each case marked a turning point in Bitcoin’s trajectory,” the analyst explained.
Bitcoin and Stablecoin Supply Volume on Binance. Source: CryptoQuant
The growing supply of stablecoins suggests that the amount of idle capital available for deployment into the crypto market is increasing.
Historically, this pattern has emerged during phases of structural capitulation or seller exhaustion,
when “weak hands” exited the market and “strong hands” began accumulating.
The head of the European research division at investment firm Bitwise, Andre Dragos, shared a chart showing that the seller exhaustion constant among short-term holders has reached its lowest level since August 2023.
This metric typically reaches such lows when volatility is low but realized on-chain losses are high.
Similar levels in the past have preceded increases in volatility.
The most recent example saw Bitcoin surge 190% — from $25,300 in August 2023 to $74,000 in March 2024.
New Target — $124,000
The daily chart shows that the BTC/USD pair is trading inside a “falling wedge” after the price rejected the upper trendline of the pattern near $107,000.
A falling wedge is a classic bullish reversal pattern, suggesting that the downtrend is nearing its end.
“Bitcoin is trading inside a falling wedge. The breakout is very close,” said analyst Mister Crypto.
Daily Chart of BTC/USD Pair. Source: TradingView
If Bitcoin closes above $107,000, it would confirm a breakout.
The next target would then be $124,000, representing a 19% rise from the current price.
This article does not contain investment advice or recommendations.Every investment and trading decision involves risk,and readers should conduct their own research before making decisions.
See also: "From Student to Millionaire: Chinese Trader Turns $210 Into a Fortune With Meme Tokens and NFTs"
