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The Bitcoin price has now broken above $68,000 mark in the middle of a run of a Price increase of 12% in the past seven days. However, analysis says Bitcoin price will not be able to stop this increase at any time soon. According to a detailed analysis on TradingView, a well-known crypto analyst has shared insights that suggest Bitcoin is on track to climb even higher to reach an ambitious target of $95,000, but USDT.D needs to break below the lower bound of a triangle. First.
Interesting look at Bitcoin price prospects
The analyst in question, known as TheSignalyst, takes an unconventional approach to analyzing Bitcoin’s price movements by relying on a lesser-known but intriguing metric.
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According to to TheSignalystThe USDT.D chart, which tracks the dominance of the stablecoin Tether (USDT) in the cryptocurrency market, efficiently tracks the overall sentiment of the crypto market. Although not widely used by mainstream analysts, this metric has proven useful in predicting market tops, bottoms, and future price action.
According to the USDT.D chart, USDT dominance has been showing a descending triangle pattern since the first days of August. Since this period, USDT dominance has fluctuated between 6.5% and 5.34% of the total crypto market capitalization until the time of writing. As the analyst noted, Bitcoin’s price will likely continue to consolidate within a certain range as long as USDT’s dominance remains within the descending triangle.
However, TheSignalyst adds that if Bitcoin really wants to make a bullish run, USDT dominance must break downwards. Specifically, it should fall below the lower bound of the descending triangle and fall below 5.2% of the total crypto market capitalization.
What does this mean for the BTC price?
As the largest stablecoin, USDT’s dominance can reveal a lot about the prevailing sentiment among crypto traders. High periods of USDT dominance suggest investors are withdrawing from riskier assets and parking their money in stablecoins, while a decline in USDT dominance indicates an inflow into cryptocurrencies.
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In the case of TheSignalyst’s analysis, breaking USDT dominance below 5.2% would indicate a reduced dependence on the stablecoin and a renewed appetite for riskier assets, paving the way for Bitcoin to become a more aggressive start an upward trajectory.
According to the analyst, if this scenario unfolds, it could be possible that Bitcoin’s price could break past the $70,300 mark in the weekly time frame. This level is just above a descending trendline that has held back Bitcoin’s momentum since April, and a successful breakout could confirm the start of a much bigger rally.
In the event of such an outbreak, the analyst suggests a strong one rise towards the $100,000 price level. At the time of writing, Bitcoin is trading at $68,100, which is about 47% away from this six-figure target.
Featured image created with Dall.E, chart from Tradingview.com