A strong correlation between liquidity and Bitcoin activity suggests the market is entering a healthy consolidation phase before potential expansion.
The Bitcoin market in early November appears to be holding great potential, and some clues are coming from the movement of stablecoins.
It’s not a price spike, nor is it a FOMO sentiment, but rather the data flowing behind the scenes, and on-chain analyst Arab Chain on CryptoQuant has uncovered an interesting pattern worth paying attention to.
On Binance, the Z-Score for USDT jumped to 3.87, reflecting a large influx of stablecoins onto the exchange. What does it mean? There’s a lot of idle money ready to move.
Meanwhile, Bitcoin itself recorded a Z-Score of 0.87, relatively calm, still within a moderate range compared to its historical price movements. The combination of these two numbers suggests that liquidity is increasing, but not rushing into the market, as if the big players are waiting for the right timing.
On the other hand, the Relative Z-Score is currently at 3.0. According to Arab Chain, this figure indicates that current activity has exceeded historical averages. This aligns with the pattern often seen when institutions begin to slowly build their positions.
Furthermore, the correlation between the Bitcoin and stablecoin indices has strengthened to 0.55, indicating that fund flows are starting to align with price stability. This is one signal that the market is entering a new rebalancing phase.
Previously, liquidity pressure hit the market when a potential US government shutdown raised concerns about blocked capital flows. Bitcoin reserves on exchanges rose, while miners’ balances shrank. This is a classic sign of a defensive market.
But now, the trend is shifting. Stablecoins are entering exchanges, not leaving. Furthermore, the CNF also previously reported that institutional flows through ETFs are now increasingly dominating price direction.
Using the EFIS system, it was revealed that ETF data can predict the accumulation and distribution phases of large investors with greater precision. When fund flows from ETFs are stable and trending upward, prices are likely to follow suit.
This situation provides a new picture: the market isn’t fearful, it’s simply catching its breath. High stablecoin accumulation without selling pressure is a sign that market players, especially institutions, are gathering momentum. And if Bitcoin’s price can stay above the current support level, the chances of a surge could increase.
Interestingly, according to Arab Chain, all these indicators suggest that market sentiment hasn’t peaked yet. So, there’s no euphoria yet, but this is certainly not a bear market phase.
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