Bitcoin fell 15% in the week after hitting an all-time high of about $108,365, according to data from Bitstamp. The cryptocurrency may fall further in the coming weeks as Tether’s market dominance rapidly recovers.
USDT.D vs BTC/USD weekly performance chart. Source: TradingView
Tether’s dominance signals a “massive dump” in Bitcoin markets
According to TradingView contributor The ForexX Mindset, Bitcoin (BTC) price could witness a “massive dump” due to its negative correlation with the USDT Dominance Index (USDT.D), which measures Tether’s (USDT) share of all cryptocurrencies. there is. market.
In particular, the USDT.D indicator shows signs of a significant rebound after reaching support levels last seen in March. At that time, USDT.D rebounded sharply from similar support near the 3.80% level, which coincided with Bitcoin reaching a local high of around $73,800.
BTC/USD and USDT.D weekly performance comparison. Source: ForexX Mindset
The rebound signaled a flight to safety as traders moved capital into Tether in anticipation of increased market volatility or increased downward pressure. The ForexX mindset sees a similar Bitcoin downtrend and asks traders to ignore any short-term price gains.
“We will probably see a sharp spike in prices. This is what could fool people into thinking the market is about to take off,” the analyst added.
“But don’t believe it. This is a trap. “There’s a ton of trash coming right after that surge, and anyone who jumps in too quickly could be wiped out.”
The bearish outlook comes as Bitcoin has recovered modestly from its December low of around $92,120. By December 27, the BTC/USD pair had risen to near $96,740.
relevant: BTC may bounce in the ‘coming days’ as measuring signals increase buying pressure.
However, according to the ForexX mindset, this recovery could lead to an “institutional ambush”.
Analysts warn that dark pools and whales could intentionally drive up the price of Bitcoin to attract retail traders, dumping their holdings at local highs, leaving smaller investors with significant losses.
Bitcoin expected to hit $81,500 in January.
Bitcoin is experiencing a correction after failing to break the 1.618 Fibonacci extension level near $102,734.
This decline comes as the weekly Relative Strength Index (RSI) shows a bearish divergence with prices entering overbought territory and forming higher highs. This is a classic sign that bullish momentum is waning.
BTC/USD weekly price chart. Source: TradingView
Currently trading near $96,000, the next downside target for Bitcoin could be the 20-week exponential moving average (EMA) around $81,500 if the correction deepens. A further decline could cause Bitcoin to retest the 50-week EMA near $67,700, which coincides with the 1.0 Fibonacci retracement level.
Meanwhile, claiming the 1.618 Fib line as support could push Bitcoin price to $150,000 by the first half of 2025. This is an all-time high target previously predicted by several analysts.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.