Bitcoin’s Hidden Bull Signal: On-Chain Trends Hint at Imminent Breakout Above $90K

Bitcoin’s Hidden Bull Signal: On-Chain Trends Hint at Imminent Breakout Above $90K

Bitcoin has quietly staged a strong rebound, climbing over 10% in just one week and reclaiming the $85,000 mark. Despite recent volatility triggered by global tariff concerns, Bitcoin on-chain trends suggest the market is far from overheated. Analysts now point to a combination of key metrics that may be setting the stage for another breakout.

Bitcoin Exchange Reserves Hit Multi-Year Low

According to a CryptoQuant report by analyst BorisVest, Bitcoin held on centralized exchanges has declined to levels not seen since 2018. Exchange reserves now sit around 2.43 million BTC, down significantly from 3.4 million BTC during the 2021 bull market peak.

This shift reflects increased long-term holding behavior, reducing the available supply for immediate sale. Fewer coins on exchanges typically result in upward price pressure when demand rises. The timing of this metric’s decline, paired with Bitcoin’s price recovery, suggests whales and institutional players may be accumulating again.

Stablecoin Supply Ratio Suggests Buying Power Remains

Another major bullish signal comes from the Stablecoin Supply Ratio (SSR), which is currently 14.3. The SSR measures the relationship between Bitcoin’s market cap and the available supply of stablecoins like USDT and USDC, indicating how much buying power exists relative to BTC’s price.

A lower SSR means higher purchasing power is available, which can fuel fresh buying when market conditions align. Unlike during the 2021 rally, the SSR has not yet spiked, implying that significant capital still sits on the sidelines, ready to enter the market once momentum builds.

Funding Rates Normalize, Signaling Sentiment Reset

During Bitcoin’s surge to all-time highs earlier this year, funding rates spiked as traders aggressively opened long positions, often using high leverage. That environment led to overheating and set the stage for the recent correction.

Today, funding rates across exchanges have cooled to neutral, hovering between 0.00% and 0.01%. This normalization is a positive sign, as it indicates a balanced derivatives market, with neither bulls nor bears in control. A reset in sentiment often precedes the next leg up in bull markets, especially when fundamentals remain strong.

This trifecta—low exchange reserves, stable SSR, and neutral funding rates—creates a favorable setup for continued growth, according to BorisVest. He notes that on-chain data is often a leading indicator of institutional activity, which may soon translate into renewed price momentum.

Conclusion: Bitcoin’s Next Move Could Be Fueled by Fundamentals

While macroeconomic uncertainty still looms, from rising tariffs to shifting monetary policy, Bitcoin on-chain trends suggest the bull case remains intact. With exchange reserves plunging, stablecoin liquidity ready to deploy, and funding rates reset, the current environment favors another upside breakout.

The question is no longer if Bitcoin has support, but when it will capitalize on it. As the crypto community awaits confirmation, all eyes are on whether the $90,000 mark is the next stop—or just another checkpoint on the road to $ 100 K.