Bitcoin prices are showing early signs of a bullish rebound after a month of sharp volatility. Data from exchange Binance suggests that the ratio of Bitcoin reserves to stablecoins has risen for the third time this cycle, suggesting that market sentiment may be shifting in favor of buyers.
Binance data analysis shows that this trend is similar to movements prior to strong Bitcoin rallies, where the rise of stablecoins and the decline in BTC reserves led to new capital entering the market.
At the time of writing, Bitcoin is trading around $113,060 and, despite a 0.7% drop in the past 24 hours, is up about 4.5% over the past week and 1.2% over the past month. The cryptocurrency is consolidating between $107,088 and $115,957, and has seen relative stability in the market after a sharp drop earlier in the month.
Technical indicators also suggest that a bullish reversal is possible if BTC remains above the key support of $111,000.
