Bitcoin’s current rally is fueled by stablecoins, but reserves are drying up

Key Points

1. Bitcoin's price climbed as stablecoin reserves on exchanges hit new lows, reflecting increased market conviction and spot-driven buying momentum.

2. The Exchange Stablecoins Ratio fell, indicating strong investor demand for BTC, but upside may be limited without new capital entering the market.

3. NVT and NVM ratios spiked significantly (up 88.21% and 25.55%), historically signaling potential short-term corrections or price rebalancing.

4. Directional indicators show buyer dominance (+DI at 33.12, -DI at 11.73), but weak ADX (19.70) suggests the rally lacks full conviction.

5. Despite bullish spot flows, cooling volume and weak trend strength hint at growing risk; the next few days will be crucial for BTC's trend direction.