Bitcoin’s consolidation below $100,000 has sparked fresh analysis of market indicators. Technical analysts have identified USDT dominance as a key metric that could trigger Bitcoin’s next major rally to $150,000.
Understanding USDT Dominance
USDT dominance represents the percentage of total crypto market cap in Tether. This metric helps predict market movements. High USDT dominance suggests low crypto buying pressure. A declining trend indicates funds moving into cryptocurrencies.
Historical Pattern Analysis
Bitcoin has shown consistent re-accumulation patterns since November 2022. Two major accumulation phases occurred:
- January 2023 to March 2023
- November 2023 to February 2024
Both phases shared key characteristics:
- 0.5 Fibonacci extension level alignment
- Peaking 1-day RSI in USDT dominance
- Dollar Index (DXY) pullbacks
Current Market Conditions
Bitcoin now mirrors previous accumulation patterns. The current phase started in December 2024. USDT dominance and DXY show similar pullback patterns. These indicators suggest an imminent rally.
Price Target Analysis
Technical analysis points to a $150,000 target for Bitcoin. This represents a 54% increase from current levels. Bitcoin must first break the psychological $100,000 resistance. The re-accumulation phase could end within two weeks.
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Market Implications
The current consolidation phase presents accumulation opportunities. Traders should monitor USDT dominance trends. A declining USDT dominance could signal the start of the next rally.
Bitcoin trades at $97,175, showing a 1.6% increase in 24 hours. Market sentiment remains bullish despite recent consolidation. Technical indicators support potential upward movement.
Tags: Bitcoin, USDT Dominance, Technical Analysis, Cryptocurrency Markets, Price Prediction
Source: NewsbtcBTC