Bitcoin Dips Below $105K As SSR Signals Massive Capital Influx - Here’s What’s Next

Bitcoin's brief retreat from the $105,000 level has traders buzzing - and the SSR indicator suggests this might be the calm before the storm.

The Signal Everyone's Watching

Stablecoin Supply Ratio metrics are flashing green, indicating billions in dry powder waiting on the sidelines. When stablecoin reserves pile up like this, history shows explosive moves typically follow.

Market Mechanics at Play

This isn't your average dip - it's a liquidity vacuum cleaner sucking up weak hands before the next leg up. The $105K level became psychological resistance, but technicals suggest it's merely a speed bump.

Institutional Positioning

While retail panics about short-term price action, smart money's accumulating. They understand what most traders don't - these SSR signals have preceded every major bull run since 2020.

Another day, another 'crisis' in crypto - meanwhile traditional finance still can't figure out how to process payments faster than a 1970s mainframe.

SSR Signals Hidden Liquidity — But With a Cycle-End Twist

According to CryptoQuant analyst Woominkyu, the behavior of the Stablecoin Supply Ratio (SSR) offers critical insight into Bitcoin’s current position in the market cycle. When SSR drops, stablecoin liquidity — effectively the dormant “buying power” sitting on the sidelines — rises. This dynamic often precedes market recovery phases, as capital quietly prepares to rotate into Bitcoin.

Conversely, when SSR climbs, it typically reflects liquidity being deployed already, aligning with overheated markets and distribution periods.

Right now, SSR is retesting its yearly lows while Bitcoin trades near $104,000 and attempts to consolidate. This alignment has historically marked powerful turning points, suggesting that fresh capital could be preparing to re-enter. In previous cycles, similar setups preceded relief rallies and, in some cases, explosive upside continuation. That makes the current environment particularly intriguing, even as bearish sentiment dominates and fear spreads across the market.

However, Woominkyu highlights a key nuance that traders cannot ignore: each SSR rebound zone in recent cycles has shown diminishing strength. In other words, while liquidity is accumulating, the magnitude of these signals appears to be weakening. This could mean that crypto’s liquidity engine — once driven heavily by rapid stablecoin expansion and speculative inflows — is slowing.

If this interpretation holds, bitcoin may still see a recovery rally from current levels, potentially even one final push toward euphoric highs. But it also suggests the possibility that the market is gradually transitioning into a new phase — one defined less by aggressive liquidity cycles and more by maturing capital flows, institutional participation, and slower reflexive momentum.

Bitcoin Slides Toward Key Support as Momentum Weakens

Bitcoin’s price action continues to deteriorate as market volatility rises, with BTC now trading around $104,000 after breaking below the $105,000 level. On the 8-hour chart, the structure remains fragile, and the series of lower highs and lower lows highlights persistent bearish momentum. Attempts to reclaim the $110,000 region earlier in the week were rejected NEAR the cluster of moving averages, reinforcing that sellers currently control the market.

The highlighted consolidation zones around $109,000–$111,000 and $106,000–$108,000 have flipped into resistance, providing a visual map of where supply continues to overwhelm demand. Now, price is approaching a critical demand zone near $102,000–$103,000. This area has historically attracted dip buyers, but if it fails, Bitcoin may be exposed to a deeper retrace toward psychological support closer to $100,000.

Volume has noticeably increased on recent red candles, suggesting panic-driven selling and forced liquidations rather than calm distribution. Meanwhile, moving averages are starting to roll over, and the 50-EMA has turned sharply lower, signaling momentum loss.

Bulls need to defend this current support region to avoid further downside acceleration. Until Bitcoin reclaims at least the $108,000–$110,000 zone, the market bias leans bearish, and traders should expect volatility and caution as price compresses near these key levels.

Featured image from ChatGPT, chart from TradingView.com