Although Bitcoin’s price is rapidly dropping, an analyst who looks at the USDT.D. dominance chart believes the coin will make a strong comeback.
What Does It Mean for BTC If USDT Predominance Falls?
Take to X April 29th, the analyst said USDT.D fell recently, breaking beneath a crucial support trendline. USDT.D has faced a number of challenges. Weakness is indicated by strong rejections, even at the immediate level of resistance.
The analyst expects that the most valuable cryptocurrency in the world will continue to rise, reverse recent losses, and revitalize the crypto market.
USDT.D is a chart that shows the market capitalization of USDT, which is by far the largest stablecoin in existence. The USDT.D chart compares USDT, world’s biggest stablecoin to the total market value of stablecoins such as USDC, DAI and FUSD.
The chart shows the dominant position of USDT on the stablecoin market. Analysts have used this chart as a way to measure sentiments and correlate with Bitcoin.
Analysts note that USDT.D is inversely correlated with Bitcoin. Stablecoins such as USDT are a haven for investors when the price of Bitcoin plummets. USDT.D, therefore, will increase when BTC is falling and drop when Bitcoin prices are tearing.
Analysts predict that Bitcoin will increase in price and stabilize after the recent drop under the trendline support and the USDT dominance. BTC has been under heavy pressure and is down over 15% since its all-time highest.
The USDT.D has also found some resistance. It could indicate the return of Bitcoin’s Q1 2024 early uptrend if it fails to reject.
Bitcoin Bears: What’s next, $60,000?
Bitcoin’s trend is currently lower, but still above $60,000. Even though BTC is slowing down, it’s possible that BTC could gain momentum and expand. It may even be able to regain $73,800.
Analysts expect a “massive leg up” Bitcoin would continue to rise if USDT.D continued falling and aligned with the break of trend line support. The analyst believes that BTC will rally over the previous highs and reach $80,000.
Even though BTC price is expected to increase, it will be a long time before the BTC market reaches its full potential due to USDT dominance.
Changes in market dynamics such as institutional adoption through spot Bitcoin Exchange-Traded Funds (ETFs), and even regulatory developments like the United States Securities and Exchange Commission.SEC( initiating charges for stablecoins, as they did with BUSD can have an impact on Bitcoin or USDT dominance.
Chart by TradingView. Image from Shutterstock.
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