A Bitcoin indicator with a ‘perfect’ history suggests dips should be bought

The Bitcoin to Stablecoin Ratio Oscillator shows that the $40,000 Bitcoin price offers a good entry point.

MicroStrategy may be as smart as ever, “buying the dip” in Bitcoin because an indicator with a “perfect” history is telling traders to buy.

In a June 15 tweet, popular analyst Cole Garner opined that the Bitcoin to Stablecoin Ratio Oscillator is flagging a bullish trend.

Buy the dip or watch the whales?

Bitcoin consolidated support at $40,000 after MicroStrategy announced plans to raise an additional $1.5 billion, with all proceeds from the funds to be used to purchase Bitcoin.

The move was praised by Elon Musk and investor Paul Tudor Jones, who now advocates a 5% Bitcoin position, up from 1% previously.

Currently, the Bitcoin to Stablecoin Ratio Oscillator predicts a good buying opportunity even at new local highs.

This oscillator measures the amount of Bitcoin on exchanges relative to stablecoins. According to Garner, when the ratio’s moving average enters a lower bound (shown in green on the chart), it’s time to buy Bitcoin.

Bitcoin to Stablecoin Ratio Oscillator, Buy Point Clearly Source: Cole Garner/ Twitter

This indicator has not failed in capturing Bitcoin’s bullish trends since 2019.

Garner commented: "A perfect 'buy the dip' hit rate since 2019, it just displayed another buy signal."

CryptoQuant CEO Ki Young Ju still sounded the alarm about a possible new sell-off this week. He said the sell-off could come from Bitfinex, where whales have accumulated a large short position.

“If the sell-off happens again, it could be from Bifinex,” Ki told his Twitter followers.

“After the Bitcoin crash, most exchanges have already absorbed most of the inflow of Bitcoin. Except Bitfinex. All eyes are on the Bitfinex whale.”

Bitcoin unexecuted volume index as of June 11 Source: Ki Young Ju/Twitter

Traders eye MicroStrategy

Meanwhile, MicroStrategy is putting more money into Bitcoin, which in itself could be enough to boost the market.

As Decentrader co-founder Filbfilb noted, MicroStrategy’s timing in buying Bitcoin was perfect in terms of Bitcoin spot prices reaching higher.

He told users of his Telegram trading channel on Friday that it was more like a "fractal" than a chance relationship.

MicroStrategy CEO Michael Saylor continued to speak out against Bitcoin during the funding announcement. He responded to Tudor Jones by saying: “If you invest 5% of your portfolio in Bitcoin, you have decided to invest 95% of your portfolio in assets that are demonetized by Bitcoin.”