A closely watched crypto analyst identifies a key factor that could cause Bitcoin (BTC) to fall all the way to $85,000.
In a new thread on the social media platform X, crypto trader Justin Bennett tells According to his 115,700 followers, the crypto king will see a significant price drop the next time prominent stablecoin Tether (USDT) (USDT.D) tests the 4.7-5% area of dominance.
“BTC is starting to break down. If USDT.D tests 4.7-5%, Bitcoin to $85,000 seems appropriate.”
According to Bennett, the market will not reach its peak bottom until Tether’s dominance levels reach the target area. The dominance level of an asset is the ratio of its market capitalization to the market capitalization of the entire crypto market.
‘My plan hasn’t changed. I still think we will get Tether dominance in the 4.7-5% range before we see the bottom of the crypto market. Still 7% to go, give or take.”
The crypto strategist goes further participation that USDT.D is on the rise and should reach the 4.7-5% range in the coming weeks.
“The weekly chart says it all. Note how USDT.D closed above 4.29% two weeks ago and closed above 4.29% last week. As long as this holds on a weekly close basis, that 4.7-5% range is next.”
According to the analyst, BTC is rising as of this morning to have just under a day and a half to turn things around.
“Bulls have just 33 hours to turn things around, which seems unlikely given today’s carnage in the stock markets. We’ll see.”
The top crypto asset by market cap is trading at $92,046 at the time of writing, down 1.9% over the past 24 hours.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further X, Facebook And Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/Garan Julia/Aleksandr Kovalev