One of the most respected crypto analysts says that one important metric suggests Bitcoin (BTC), may not be able to break out any time soon.
Justin Bennett, a crypto trader, told his 115.800 followers in a recent thread on social media platform X, that the Tether (USDT.D), dominance chart, is indicating ‘bearish for Bitcoin.
The USDT.D chart is closely watched by traders as it shows the market capitalization of stablecoin USDT.
It is considered that a bullish USDT.D graph indicates that traders are selling their crypto assets in favor of stablecoins.
Says Bennett,
Here’s the problem for BTC bulls. Tether dominance is now trying to test this new area of support. USDT.D must drop back into the range of the high-timeframe timeframes to be considered bullish. It can’t. Expect BTC, ETH and other cryptos to move sideways or lower. You can’t forecast; you have to react .”
A trader said he’d turn bullish only if USDT.D lost the level of 4.37% as support.
Since early February, the dominance of Tether has indicated a cautious attitude towards crypto. It’s been weeks since I said this. There’s no reason for me to continue being bullish about BTC, ETH etc. If 4.37% fail, .”
USDT.D was at 4.47% as of the time this article was written, which indicates that trader support is still holding.
A trader says Bitcoin could be setting up a situation for a squeeze.
Short squeezes occur when traders borrow assets at certain prices in the hope of selling them for less to pocket the difference, but are then forced to purchase the borrowed assets as the momentum turns against them and triggers further rallies.
A decent amount of liquidity on the buy-side between current levels to $100,000. We’ll see then if Gramps is able to hobble up to $103,000. The sideways chop is not beautiful, but as stocks are rallying on hope and dreams, it’s possible that Bitcoin shorts will be squeezed. The $103,000 .” is the focus of attention.
Bitcoin’s price is $97,271 as of this writing. This is flat for the day.
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Sources of Images include Pixabay Creative Commons & Midjourney
The ICD published the article Justin Bennett, Analyst: Bitcoin bulls face a challenge that can be determined by a single factor.
