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The increasing dominance of the stablecoin Tether in the crypto market could foreshadow a significant correction of Bitcoin, according to a recognized expert on TradingView. This analysis comes as BTC struggles to maintain its upward momentum after its recent all-time high of $108,365.
Tether’s dominance could tip Bitcoin
The ForexX Mindset, a recognized analyst on TradingView, published a detailed analysis on December 27 warning about a potential “bull trap”. The Tether dominance index (USDT.D) shows a significant rebound from its support at 3.80%, a level similar to that observed last March before a major Bitcoin correction.
The analyst highlights that the recent Bitcoin rebound to $96,740 could constitute an “institutional ambush”. This strategy would see large market players artificially pushing prices higher to attract retail investors before a massive liquidation.
The bearish divergence identified on the weekly RSI index, combined with Bitcoin’s failure to break through the Fibonacci extension level of 1.618 near $102,734, reinforces this bearish scenario.
Price targets and short-term outlook
The first critical support level is around $81,500, corresponding to the 20-week exponential moving average. If this support fails, the next target would be the 50-week EMA at $67,700, coinciding with the Fibonacci retracement level of 1.0.
The capital outflow to USDT suggests an anticipation of increased volatility by traders. This behavior resembles similar patterns observed during previous major market corrections.
However, if Bitcoin manages to turn the Fibonacci line of 1.618 into support, a recovery could push its price towards $150,000 by mid-2025, aligning with the optimistic forecasts of several major analysts in the sector.
Investors are thus urged to exercise caution in light of these bearish technical signals, despite the promising long-term prospects for Bitcoin.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
