Bitcoin Price Surge on the Horizon? Analyst Predicts Bullish Trends Based on Key On-Chain Metrics

    Bitcoin price might be undervalued! On-chain metrics like declining exchange reserves and low SSR indicate the potential for a price surge. Is now the time to buy?

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    Updated Apr 16, 2025 3:34 PM GMT+0
    Bitcoin Price Surge on the Horizon? Analyst Predicts Bullish Trends Based on Key On-Chain Metrics

    Analyst BorisVest from CryptoQuant draws attention to Bitcoin once more by indicating its undervalued potential through multiple important on-chain metrics. BorisVest provides market analysis indicating positive trends based on exchange reserve reduction and Bitcoin Stablecoin Supply Ratio (SSR), which both signal upward price movements. Various on-chain metrics indicate the market might be about to experience a significant price increase despite the Bitcoin market performance.

    Bitcoin Exchange Reserves: A Strong Indicator of Supply Tightening

    BorisVest considers the reduction in Bitcoin exchange reserves to be a positive indicator of price growth. Bitcoin exchange holdings have significantly decreased since the 2021 bull market, when the reserves reached 3.40 million BTC, to the current level of 2.43 million BTC. The sudden drop in Bitcoin reserves at trading platforms shows investors moving their coins from exchanges to extend ownership rather than trading.

    Image 1 – Bitcoin: Exchange Reserve – All Exchanges provided by BoriVest, published on X on April 16, 2025

    Bitcoin price may experience upward movement due to diminished exchange-supplied coins operating in the market throughout the next months. Available market supply decreases in value due to limited sales opportunities while demand continues to increase. As investors demonstrate increased confidence in Bitcoin maintaining its long-term value, they decide to store their assets rather than cash out for short-term financial gain. A significant price increase in Bitcoin is foreseeable as its supply relations with demand are imbalanced.

    Bitcoin Stablecoin Supply Ratio (SSR): An Indicator of Undervaluation

    The Bitcoin Stablecoin Supply Ratio (SSR) shows signs that point to the undervaluation of Bitcoin assets. The Bitcoin Stablecoin Supply Ratio (SSR) currently measures 14.3, which is a lower value than the previous 34 recorded in 2021. The Bitcoin Stablecoin Supply Ratio measures how much USDT, together with other stablecoins, exists versus Bitcoin’s market value, which indicates buying power throughout the market.

    Image 2 – Bitcoin: Stablecoin Supply Ratio (SSR), provided by BoriVest, published on X, on April 16, 2025

    According to Borisvest, the low Supply Stable Ratio shows that stablecoins possess enough buying power to sustain Bitcoin price despite its downward trend. The rising SSR creates conditions that lead to reduced market value of purchases and potential overvaluation. The current sub-2021 SSR indicates Bitcoin needs a price boost due to its market undervalued state in relation to the prevailing market demand.

    The Bullish Sentiment: Is Bitcoin Price Surge on the Horizon?

    Some price fluctuations occurred recently, but Bitcoin maintains an optimistic outlook overall. The market shows ongoing improvements in essential metrics, which suggest the cryptocurrency stands ready to experience a price rally. The Relative Strength Index for Bitcoin recently broke out of an extended decline, thus indicating the potential advancement of buyer momentum. Market analysts monitor how the RSI surpasses important support markers since this phenomenon indicates Bitcoin should experience price growth.

    Bitcoin stablecoins face a possible market rotation as investors shift their funds from less risky stablecoins towards unstable assets, including Bitcoin and alternative cryptocurrencies. This movement would push Bitcoin prices higher, increasing market demand. Research analysts predict an upcoming market surge because investments remain strong.

    Conclusion: Should Investors Be Bullish on Bitcoin?

    On-chain metrics indicate Bitcoin might exist at a major price undervaluation level despite its current market rates. Bitcoin shows potential for a significant price increase since its exchange reserves continue to decrease, and SSR measurements show high purchasing power. The bullish signs accompany growing institutional involvement, which makes Bitcoin appear strong for long-term success.

    Investors should consider buying Bitcoin now at its current lower price since the market has the potential to increase. The positive data in on-chain analytics should be weighed against broader market trends and worldwide economic developments. 

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