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The price of Bitcoin has now broke over $68,000 mark the middle of the run of a 12% price increase. seven days ago. However, the analysis says the price of Bitcoin will not stop this operation at any time soon. According to a detailed analysis posted on TradingView, a well-known crypto analyst shared information suggesting that Bitcoin is on the way to rise even higher to reach the ambitious goal of $95,000, but USDT.D needs to break below the lower boundary of the triangle. first.
Take the Interesting with Bitcoin Price Outlook
The analyst in question, known as TheSignlyst, takes an unconventional approach to analyzing Bitcoin price movements by relying on a little-known but impressive metric.
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According to on TheSignlystthe USDT.D chart, which tracks the dominance of the stablecoin Tether (USDT) in the cryptocurrency market, tracks well the overall sentiment of the crypto market. Although not widely used by casual analysts, this metric has proven useful in predicting market highs, lows, and future price action.
According to the USDT.D chart, the dominance of USDT has been playing a descending triangle pattern since the early days of August. Since this time, USDT’s dominance has been between 6.5% and 5.34% of the total crypto market capitalization up to the time of writing. As the analyst noted, as long as the dominance of USDT remains in the descending triangle, the price of Bitcoin will likely continue to consolidate in the range.
However, TheSignlyst adds that for Bitcoin to truly enter a bullish run, USDT’s dominance needs to bottom out. Specifically, it will have to fall below the lower boundary of the descending triangle and fall below 5.2% of the total market capitalization of the crypto market.
What Does This Mean for BTC Price?
As the largest stablecoin, the dominance of USDT can reveal a lot about the sentiment among crypto traders. High periods of USDT dominance suggest that investors get rid of risk assets and park their funds in stablecoins, while declining USDT dominance suggests income in cryptocurrencies.
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In the case of TheSignlyst’s analysis, the dominance of USDT breaking below 5.2% will indicate a reduction in reliance on stablecoins and a renewed enthusiasm for risk assets, paving the way for Bitcoin to begin an upward upward trajectory.
According to the analyst, if this situation continues, it can make the price of Bitcoin able to exceed the mark of $ 70,300 in the weekly period. This level sits above the descending line that has been stopping Bitcoin’s momentum since April, and a successful breakout could confirm the start of an even bigger rally.
In the case of such an outburst, the analyst suggests resiliency increased to the $100,000 price level. At the time of writing, Bitcoin is trading at $68,100 and is about 47% away from this six-figure target.
The featured image was created with Dall.E, a chart from Tradingview.com