Rally

bullish

Bitcoin

when

<p>The post <a href="https://coinpedia.org/news/top-reasons-why-bitcoin-btc-price-rally-is-on-horizon/">Top Reasons Why Bitcoin (BTC) Price Rally is On Horizon</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Bitcoin recently surged above $60,000, fueled by important macroeconomic factors. Traders are anticipating a rise towards $70,000. The Federal Reserve’s recent meeting minutes hinted at potential rate cuts, which could increase Bitcoin’s price by increasing global liquidity through lower interest rates. </p> 
<p>Looking at the bullish prospects, one crypto analyst highlighted that USDT’s dominance (USDT.D) could be a useful predictor of Bitcoin’s peak. As USDT.D usually trends upward over time due to coin distribution, it’s an important indicator.</p> 
<h2 class="wp-block-heading" id="h-usdt-dominance-dropping-good-for-btc"><strong>USDT Dominance Dropping, Good For BTC?</strong></h2> 
<p>According to a popular crypto analyst alias Mags on <span style="box-sizing: border-box; margin: 0px; padding: 0px;">the X platform, Bitcoin’s price is en route to hitting a target of at least $72k or higher. Mags&nbsp;<a href="https://x.com/thescalpingpro/status/1826522792466284728" target="_blank" rel="noopener">highlights&nbsp;</a>a key observation about the relationship between Bitcoin (BTC) and the USDT Dominance (USDT.D) chart. He noted that USDT.D measures Tether’s (USDT) dominance&nbsp;</span>in the crypto market relative to the total market cap of all cryptocurrencies.&nbsp;</p> 
<p>Historically, there has been an inverse correlation between USDT.D and Bitcoin: when USDT.D decreases, Bitcoin tends to increase in value, and vice versa.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> pump incoming ? <br><br>If you've been paying attention to USDT.D, you already know about the inverse correlation between USDT.D and BTC. <br><br>Looking at the chart, USDT.D broke down a strong trendline support and is currently testing the point of breakdown with a possible… <a href="https://t.co/lqZ6SPCgaQ">pic.twitter.com/lqZ6SPCgaQ</a></p>— Mags (@thescalpingpro) <a href="https://twitter.com/thescalpingpro/status/1826522792466284728?ref_src=twsrc%5Etfw">August 22, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-current-usdt-d-chart-analysis"><strong>Current USDT.D Chart Analysis</strong></h2> 
<p>The USDT.D chart must be understood to understand what’s happening. It compares the market capitalization of USDT, the world’s largest stablecoin, to USDC, DAI, FUSD, and all other USD-pegged assets. Mags pointed out that USDT.D has recently broken below a significant trendline support. This breakdown is crucial because it suggests a shift in market sentiment, potentially indicating that investors are moving away from holding USDT in favor of other assets. The chart now shows a possible bear channel formation, meaning that USDT.D might continue to decline.</p> 
<h2 class="wp-block-heading" id="h-bitcoin-s-technical-setup-towards-72k"><strong>Bitcoin’s Technical Setup towards $72K</strong></h2> 
<p>Conversely, Bitcoin is forming a broadening wedge pattern on its chart. A broadening wedge is typically considered a bullish continuation pattern, suggesting that Bitcoin could experience a strong upward move after some volatility and fluctuations. This pattern generally indicates increasing volatility but with a bullish bias, signaling that the price might continue to rise once the pattern completes.</p> 
<p>If USDT.D continues its downward trajectory, it could lead to a significant increase in Bitcoin’s price. Mags predicts this scenario could propel Bitcoin to $72,000 or even higher. The reasoning is that as investors shift away from USDT, they might put more money into Bitcoin, significantly driving up its price.</p>

Top Reasons Why Bitcoin (BTC) Price Rally is On Horizon

Table of Contents

CoinPedia News

Other articles published on Aug 22, 2024

Coinbase To Launch Perpetual Futures For Render, Saga & Threshold

Ethereum Price Drops, Polygon Surges, TAO Faces Breakout

Unseen Link: Ripple and Bank of America’s Silent Partnership

VeChain News: VET Now a Tap Away for EU Users as Oobit Goes Big with iOS Expansion

Bitcoin exchange inflow has fallen sharply in August — CryptoQuant

TRON Achieves Record Revenue of $5.33 Million

Join our free newsletter for daily crypto updates!