Bitcoin US To The Rest Reserve Ratio Has Formed A Golden Cross
On-chain data shows that US-based central entities have been increasing their Bitcoin share recently. Here’s what this could mean for the asset.
Bitcoin US To The Rest Reserve Ratio Has Formed A Golden Cross
In a CryptoQuant Quicktake post, an analyst has discussed the latest trend in the Bitcoin US to The Rest Reserve Ratio. This indicator, as the name suggests, measures the ratio of the asset held by American centralized platforms to that held by off-shore ones.
The metric considers not just cryptocurrency exchange reserves but also the coins involved with the likes of exchange-traded funds (ETFs). When its value rises, it means coins are transferring from other platforms into the US-based ones. On the other hand, it going down suggests foreign platforms are gaining dominance.
Now, here is the chart for the Bitcoin US to The Rest Reserve Ratio shared by the quant that shows the trend in its 20-day and 50-day exponential moving averages (EMAs) over the past year and a half:
As displayed in the above graph, the 20-day EMA of the Bitcoin US to The Rest Reserve Ratio has seen a sharp surge during the past month, which implies the American entities have been gaining more share. Earlier, these platforms had been losing dominance so fast that the 20-day EMA fell below the 50-day one, but now, the reverse crossover has occurred with this uptrend.
From the chart, it’s visible that this type of crossover occurred last year as well. Clearly, this previous instance led to a rally for Bitcoin that took its price to new highs. The latest one has so far also had the same effect on the cryptocurrency, as it’s entered into all-time high exploration mode. Also, if the last golden crossover is to go by, this fresh run may go on for a while as well.
Something to keep an eye out for, however, is the death cross, which takes place when US platforms start losing dominance at a rate that takes the 20-day EMA under the 50-day one. Both of the previous occurrences of this pattern meant the
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
