bitcoin is experiencing a rally following its recent recovery above the $60,000 mark the previous day. Amidst this price performance, renowned cryptocurrency analyst Mags on Elon Musk’s social media platform x shared his latest news. x.com/thescalpingpro/status/1826522792466284728″ target=”_blank”>asset analysis.
According to Mags, bitcoin could be poised for a major rally, driven by factors related to USDT (USDT.D) dominance and the formation of technical chart patterns.
bitcoin on the verge of a $72,000 rally?
Mags explained that the inverse correlation between USDT dominance and bitcoin price is a key indicator to watch. USDT dominance refers to Tether’s (USDT) market share in the overall cryptocurrency market, and its movements can often signal changes in bitcoin’s price.
Mags noted that USDT.D recently broke a strong trend line support and is currently testing the breakout point, which could lead to the formation of a bearish channel.
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Is-Bitcoin-Ready-to-Soar-Key-Indicators-Point-to-a.png" alt="Chart of USDT.D and bitcoin shared by Mags on x” />
Meanwhile, bitcoin is forming a broadening wedge pattern, which is often considered a bullish continuation signal. If USDT.D continues to fall, Mags anticipates that bitcoin could experience a notable “rally,” which could push the price to $72,000 or higher.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin Incoming bomb?
If you have been paying attention to USDT.D, you already know about the inverse correlation between USDT.D and btc.
Looking at the chart, USDT.D broke a strong trend line support and is currently testing the breakout point with a possible… image.twitter.com/lqZ6SPCgaQ
— Magazines (@thescalpingpro) twitter.com/thescalpingpro/status/1826522792466284728?ref_src=twsrc%5Etfw” target=”_blank”>August 22, 2024
Rising Volatility: A Catalyst for btc’s Next Move?
In addition to technical indicators, another factor contributing to the growing anticipation of a bitcoin price surge is the recent increase in market volatility.
bitcoin volatility has surpassed levels not seen in recent months and has continued to rise, which could be a potential catalyst for bitcoin to experience a significant breakout to the upside.
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Cryptocurrency Analyst Daan crypto Trades x.com/DaanCrypto/status/1826349302849175981″ target=”_blank”>Outstanding This development follows a recent post by x, noting that after a period of low volatility, bitcoin volatility levels are on the rise again, approaching levels seen earlier this year during the asset’s all-time highs.
Daan crypto Trades emphasized that this increase in volatility is necessary to end bitcoin’s consolidation, which would potentially lead to a decisive price move in one direction or the other.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin After a big drop in volatility levels, it is now climbing back up and approaching the levels we saw earlier this year at all-time highs.
This is what is ultimately needed to end this massive consolidation one way or another. photo.twitter.com/CHoZXHk5K4
— Daan Cryptocurrency Trading (@DaanCrypto) twitter.com/DaanCrypto/status/1826349302849175981?ref_src=twsrc%5Etfw” target=”_blank”>August 21, 2024
Featured image created with DALL-E, chart by TradingView
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