The Bitcoin price has recently surpassed the $68,000 threshold amidst a 12% increase in price over the last week. Analysts suggest that this upward momentum in Bitcoin’s price is expected to continue for the foreseeable future. A comprehensive analysis shared on TradingView by a noted crypto expert indicates that Bitcoin could reach an ambitious target of $95,000, but first, USDT.D must break below a crucial lower boundary of a triangle.
Unique Perspective On Bitcoin Price Predictions
The analyst, known as TheSignalyst, employs an unconventional technique to evaluate Bitcoin’s price trends by utilizing a lesser-known yet intriguing metric.
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According to TheSignalyst, the USDT.D chart, which illustrates the dominance of the stablecoin Tether (USDT) within the cryptocurrency landscape, effectively tracks the overall market sentiment. While not widely recognized by mainstream analysts, this metric has proven valuable in forecasting market peaks, troughs, and forthcoming price trends.
As per the USDT.D chart, USDT dominance has been forming a descending triangle pattern since the early days of August. Throughout this period, the USDT dominance has fluctuated between 6.5% and 5.34% of the total cryptocurrency market capitalization up to the present moment. As noted by the analyst, while USDT dominance remains within the descending triangle, Bitcoin’s price is likely to continue experiencing a period of consolidation.
However, TheSignalyst emphasizes that for Bitcoin to truly initiate a bullish movement, the USDT dominance must break downward. Specifically, it would need to dip below the lower boundary of the descending triangle and drop under 5.2% of the total cryptocurrency market capitalization.
Implications For Bitcoin’s Price
As the leading stablecoin, USDT dominance can provide significant insights into the current sentiment among cryptocurrency traders. Periods of high USDT dominance generally indicate that investors are moving away from riskier assets, opting instead to secure their funds in stablecoins, while a decline in USDT dominance suggests an influx of capital into cryptocurrencies.
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In the context of TheSignalyst’s analysis, if USDT dominance were to fall below 5.2%, it would signal a decreased dependency on the stablecoin and a renewed interest in riskier investments, setting the stage for Bitcoin to enter a more robust upward phase.
The analyst predicts that if this scenario materializes, Bitcoin’s price could potentially break through the $70,300 level within the weekly timeframe. This price point is located just above a descending trendline that has been restraining Bitcoin’s momentum since April, and a successful breakout could signal the commencement of a significantly larger rally.
In the event of such a breakout, the analyst foresees a strong surge towards the $100,000 price mark. At the time of writing, Bitcoin is valued at $68,100, equating to about 47% distance from this six-figure target.
Featured image created with Dall.E, chart from Tradingview.com
