Bitcoin has been on a tear lately, surging past $68,000. But could it go even higher? One analyst thinks so, but there’s a catch.
A Secret Weapon: USDT Dominance
This analyst, known as TheSignalyst, uses a unique approach to predict Bitcoin’s price. Instead of looking at traditional indicators, they focus on the dominance of Tether (USDT) in the crypto market.
USDT dominance basically tells us how much of the total crypto market is held in USDT, a stablecoin pegged to the US dollar. When USDT dominance is high, it means investors are pulling out of riskier assets and putting their money into safe havens. When it’s low, it suggests investors are more willing to take risks and buy crypto.
The Triangle Pattern
TheSignalyst noticed that USDT dominance has been forming a descending triangle pattern since August. This means it’s been bouncing between a range of 6.5% and 5.34% of the total crypto market cap.
As long as USDT dominance stays within this triangle, Bitcoin is likely to continue trading sideways. But if it breaks below the lower boundary of the triangle (5.2%), it could signal a shift in sentiment.
The Bullish Breakout
A drop in USDT dominance below 5.2% would indicate that investors are moving away from stablecoins and back into riskier assets like Bitcoin. This could trigger a major rally, potentially pushing Bitcoin past $70,300 and towards $100,000.
The Bottom Line
While this analysis is interesting, it’s important to remember that predicting the future of crypto is tricky. However, if USDT dominance does break below 5.2%, it could be a strong signal that Bitcoin is ready for its next big move.
