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The price of bitcoin has now over $68,000 marks in the middle of a streak of bitcoin-retail-investors-returning-to-the-market-metrics-show-increasing-demand/” rel=”nofollow”>12% price increase in the last seven days. However, the analysis says that the price of bitcoin will not stop this increase at any time soon. According to a detailed analysis published on TradingView, a well-known crypto analyst has shared insights suggesting that bitcoin is on track to rise further to reach an ambitious target of $95,000, but USDT.D needs to fall below the lower boundary of a triangle. first.
Interesting insight into the bitcoin price outlook
The analyst in question, known as TheSignalyst, takes an unconventional approach to analyzing bitcoin's price movement based on a lesser-known but intriguing metric.
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According to TheSignalystThe USDT.D chart, which tracks the dominance of the Tether stablecoin (USDT) in the cryptocurrency market, efficiently tracks the overall cryptocurrency market sentiment. Although not widely used by conventional analysts, this metric has proven useful in predicting market highs, lows and future price action.
According to the USDT.D chart, USDT dominance has been following a descending triangle pattern since the early days of August. Since this period, USDT's dominance has ranged between 6.5% and 5.34% of the total crypto market capitalization as of this writing. As the analyst noted, as long as USDT dominance remains within the descending triangle, bitcoin price is likely to continue consolidating within a range.
However, TheSignalyst adds that for bitcoin to truly enter a bull run, USDT's dominance must be broken to the downside. Specifically, it would have to fall below the lower boundary of the descending triangle and fall below 5.2% of the total crypto market capitalization.
What does this mean for the price of btc?
As the largest stablecoin, USDT's dominance can reveal a lot about the prevailing sentiment among cryptocurrency traders. Elevated periods of USDT dominance suggest investors are exiting riskier assets and parking their funds in stablecoins, while a decline in USDT dominance suggests capital inflows into cryptocurrencies.
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In the case of TheSignalyst's analysis, a drop in USDT dominance below 5.2% would indicate less dependence on the stablecoin and a renewed appetite for riskier assets, paving the way for bitcoin to embark on a trajectory more aggressive ascending.
According to the analyst, if this scenario plays out, it could allow the price of bitcoin to surpass the $70,300 mark in the weekly period. This level sits just above a descending trend line that has been stalling bitcoin's momentum since April, and a successful breakout could confirm the start of a much larger rally.
In case of such a breakout, the analyst suggests a strong rise towards the $100,000 price level. At the time of writing, bitcoin is trading at $68,100 and is approximately 47% away from this six-figure target.
Featured image created with Dall.E, chart from Tradingview.com
