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Bitcoin And Ethereum Exchange Inflows Overshadow Stablecoin Demand – Details
Bitcoin is currently trading just above $110,000, a critical demand zone facing increased bear pressure and cautious investor sentiment. A significant factor contributing to this uncertainty is the recent capital rotation from Bitcoin to Ethereum. Analyst Axel Adler highlights data showing a surge in Bitcoin and Ethereum inflows to exchanges after Bitcoin's all-time high, without a corresponding increase in stablecoin liquidity. This imbalance suggests profit-taking and excess selling pressure. Adler's Inflow Ratio, which compares major crypto inflows to stablecoin liquidity, recently spiked to 4.0x, coinciding with a price pullback. While the ratio has eased, it still indicates that inflows of major cryptocurrencies are high relative to available stablecoin capital. This suggests limited buying liquidity is capping rallies, placing Bitcoin in a bearish setup. However, trends can shift quickly with renewed stablecoin inflows or institutional demand. Bitcoin is testing the 100-day SMA around $111,737 as immediate resistance. Failure to break above this level suggests sellers remain active. Support is found at $108,000, with stronger demand near the 200-day SMA at $101,460. A breakdown below $108,000 could lead to further losses. Bitcoin remains in consolidation, and a decisive move above $115,000 is needed to signal a bullish shift. Bulls must defend $108,000 to prevent further downside.
