Bitcoin (BTC), the largest cryptocurrency by market capitalization, ended January above the $40,000 threshold, signaling positive price action. However, market expert Justin Bennett argues that Bitcoin has not yet reached bottom.
Bennett’s analyze A chart of Tether’s stablecoin USDT Dominance (USDT.D) shows a potential downward movement, highlighting the possibility of further price declines.
Tether dominance signals concern for BTC price.
Bitcoin’s recent price recovery and its ability to surpass the $40,000 level optimism Among investors. Nonetheless, Bennett believes there could be further price declines if the mid-$44,000 range is retested.
Bennett highlights the inverse relationship between Tether dominance and Bitcoin. According to his analysis, the level of Tether dominance chart since October has been a reliable indicator of Bitcoin price movements.
According to Bennett’s analysis, as depicted in the chart above: Tether’s Dominance It could potentially increase from the current level of 6%. This increase could bring it closer to the 8% mark.
In such a scenario, Bitcoin would Performance A move in the opposite direction is likely, indicating a possible price decline.
On January 25, Bennett suggested that Bitcoin could fall another 20% from current levels, reaching around $30,000. If this scenario plays out, it will be important for Bitcoin bulls to defend the $30,000 level to maintain its current upward structure.
A decline below $29,000 would leave only three major supports remaining at $28,400, $25,900, and $24,000 before a potential retest of the $20,000 level, giving the bears a stronger position.
The performance of these support levels and Bitcoin’s ability to withstand increases. selling pressure This will be a key element to monitor. Future market sentiment will play a significant role in determining Bitcoin’s price trajectory.
Bitcoin Witnesses Excellent Accumulation Trend
Despite the possibility of further price declines, renowned cryptocurrency analyst Ali Martinez highlighted recent notable trends in BTC. accumulation Investors march.
Depending on the According to analysis by Ali Martinez, Bitcoin is experiencing a significant cumulative streak that rivals some of the most notable periods observed over the past few years.
Accumulation Trend Score is a metric that measures purchasing activity. larger entityhas remained consistently high, hovering near 1 for the past four months.
This means that influential market participants are actively accumulating Bitcoin, indicating confidence in the long-term potential of the cryptocurrency.
Martinez’s observe It also indicates that the Bitcoin price range around $42,560 has emerged as a very important area of interest.
A total of 912,626 BTC was traded within this range. This is expected to have significant significance. level of supportThis could potentially prevent further downside moves and increase buying interest.
These trends contribute to an overall positive market outlook and suggest that Bitcoin remains an attractive asset for long-term investment despite a potential price decline.
Featured image from Shutterstock, chart from TradingView.com
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