The price of the Bitcoin went below $5,380 and $5,200 in support versus the USD.  A selling trend is widespread in the market at $5,160 and $5,200.  A short term declining channel is seen near $5,160 on the hourly chart of the BTC/USD pair.  The pair is likely to struggle if it should move beyond $5,200 and it might likely re-visit the $5,050 support area.

After the tether event, the price of Bitcoin settled below $5,380 versus USD.  The BTC might likely consolidate in the short-term before a new decrease at $5,000.

Despite the few negative signs, the MACD is currently in the bullish zone.  The Hourly (Relative Strength Index) is moving higher towards the 50 levels. Major support levels are seen at $5,100 followed by $5,050, and major resistance levels are seen at $5,160, $5,200, and $5,280.

Tether reserves have led to the overall cryptocurrency market to plummet leading the investors to panic.  Since it relies a lot on the controversial stable coin, the overall integrity of the cryptocurrency market structure is being put to the test.  This situation is considered to be a “Black Swan Event” in the market.

The market is moving towards new lows.  And crypto investors are rushing to sell their crypto due to panic.  Of all the Bitcoin transactions, those that were related to selling were ranked the seventh in the Hong Kong quartered cryptocurrency exchange.

Tether has printed nearly $300 million of the stable coin, thus creating a magnetic effect on the market anytime Tether was added or removed.  When more Tether is minted, this will likely cause another major Bitcoin move.

Analysts have to say that we should ignore the Tether induced Bitcoin to sell-off.  This is because the Bitcoin is already storming into the bull market.

Tom Lee stated, “Bitcoin crossed above its 200-day moving average on April 1.  That’s a big technical hurdle to cover. Bitcoin hasn’t been above its 200-day for more than 13 months.”  He further added that this was a wildly positive sign.

There is an increase in trading activity levels by 60% to 70%.  The increases are actually taking off.

“Fundamentals are improving, technical are improving, and now there’s real activity by essentially crypto HODLERs.”  This is a sign of global crypto adoption.

People in several countries are not interested in using their local currency.  Lee stated, “Look I don’t trust using the local currency.”  The on chain volumes of cryptocurrency has taken off in countries like Turkey and Venezuela.