Crypto analyst Justin Bennett is warning Bitcoin bulls that a key metric suggests a breakout might be tough. He’s focusing on the Tether dominance chart (USDT.D), which tracks Tether’s share of the overall crypto market cap.
Tether Dominance: A Bearish Signal?
A high USDT.D is generally seen as a bearish sign for Bitcoin and other cryptos. It suggests traders are moving away from crypto and into the safer haven of stablecoins like Tether. Bennett notes that USDT.D has stayed above its previous highs since February, creating a hurdle for Bitcoin’s price.
He explains: “If USDT.D falls back within its usual range, that’s good news for crypto. But if it stays high, expect Bitcoin and other cryptos to either stay flat or even drop.” He emphasizes that this isn’t about predicting the future, but about reacting to market signals.
The $103,000 Target and a Potential Short Squeeze
Bennett says he’d only turn bullish on Bitcoin if USDT.D breaks below 4.37%. Currently, it’s hovering around 4.47%, meaning his condition hasn’t been met. However, he also sees a possibility of a short squeeze. This occurs when traders who bet against Bitcoin (shorting it) are forced to buy it back to cover their positions, potentially driving the price up.
He points to potential buying pressure between the current price and $100,000, followed by a possible push towards $103,000. While he acknowledges the market isn’t looking particularly strong, the overall stock market’s optimism could trigger this short squeeze. He’s keeping a close eye on whether Bitcoin can reach $103,000.
Bitcoin’s Current Status
At the time of writing, Bitcoin is trading around $97,271, showing little change for the day.
