Recently, BTC pushed from ~$65K to ~$80K, but has since pulled back to ~$77K.

During the move, the Exchange Stablecoins Ratio climbed from ~2.5 to 3.0+.

Obviously, this doesn't mean BTC can't keep going higher.

The ratio falls when stablecoin liquidity grows relative to BTC on exchanges, and rises when BTC's exchange value grows faster than stablecoin liquidity.

So while BTC was pushing higher, the ratio was moving higher too.

For me, this is a divergence worth keeping in mind.

Either the ratio starts rolling over, or BTC eventually starts showing weakness.

Written by nocoffeenobrain