Bitcoin’s price has recently surged above the $68,000 mark, gaining 12% over the past week and reigniting hope for a sustained upward movement. With momentum building, many wonder whether Bitcoin can push past its recent highs and target the much-anticipated six-figure mark. According to a leading crypto analyst known as TheSignalyst, Bitcoin’s path to $95,000 hinges on a critical market factor: the dominance of the stable coin Tether (USDT).
While most Bitcoin analyses revolve around traditional indicators like moving averages, RSI, and MACD, TheSignalyst has introduced a more unconventional approach by focusing on the USDT dominance chart (USDT.D). This lesser-known metric measures the market share of USDT relative to the entire crypto market capitalization and provides unique insights into overall market sentiment.
High levels of USDT dominance typically signal that investors are seeking safety in stable coins, pulling out of riskier assets like Bitcoin. Conversely, a drop in USDT dominance often indicates a renewed appetite for riskier assets, which can drive cryptocurrencies higher. TheSignalyst argues that the next major move for Bitcoin will be determined by whether USDT dominance breaks below a crucial level.
According to TheSignalyst’s analysis posted on Trading View, USDT dominance has been following a descending triangle pattern since early August. Throughout this period, USDT’s dominance has ranged between 6.5% and 5.34% of the total cryptocurrency market cap. This consolidation suggests that the market is at a pivotal moment, with Bitcoin’s price movement closely tied to what happens next in the USDT.D chart.
The analyst emphasizes that Bitcoin’s price is likely to remain in its current range as long as USDT dominance stays within the descending triangle. In simple terms, the market needs to see a breakdown in USDT dominance for Bitcoin to break free from its consolidation phase.
For Bitcoin to truly take off and reach its next major milestone of $95,000, USDT dominance must break below the 5.2% threshold. This level represents the lower boundary of the descending triangle on the USDT.D chart. A break below this level would indicate that investors are moving away from stablecoins like Tether and reallocating their capital into riskier assets, such as Bitcoin and other cryptocurrencies.
Such a shift in sentiment would likely ignite a broader crypto rally, with Bitcoin leading the charge. TheSignalyst believes that this could trigger Bitcoin’s price to break past the $70,300 resistance level, which has been a major hurdle since April 2024. A successful breakout above this level would pave the way for Bitcoin to target even higher prices.
Should USDT dominance fall below 5.2%, TheSignalyst predicts that Bitcoin could quickly gain momentum and test new highs. The $70,300 level is seen as the key point of resistance, just above a descending trendline that has repeatedly halted Bitcoin’s progress over the past few months.
A breakout at this level could confirm the start of a larger rally, potentially propelling Bitcoin toward the analyst’s ambitious price target of $95,000. In fact, TheSignalyst is not alone in this bullish outlook. Many analysts have pointed to increasing institutional demand, Bitcoin’s decreasing supply on exchanges, and the broader adoption of digital assets as factors that could fuel Bitcoin’s next major rally.
The connection between USDT dominance and Bitcoin’s price movement is grounded in market psychology. When USDT dominance is high, it typically reflects a risk-off environment, where investors are parking their funds in stable assets to avoid the volatility of the broader crypto market. This dynamic has been evident during periods of heightened uncertainty, such as regulatory crackdowns or macroeconomic instability.
However, a decline in USDT dominance suggests that investors are becoming more confident in the market and are willing to take on greater risk. If USDT dominance falls below the 5.2% threshold, it would signal that investors are shifting away from stable coins and re-entering the market with a focus on assets like Bitcoin.
At the time of writing, Bitcoin is trading at $68,100, approximately 47% away from reaching $100,000. While such a target may seem ambitious, the market has seen Bitcoin defy expectations many times before. Analysts like TheSignalyst believe that once the critical resistance levels are cleared, Bitcoin’s price could accelerate rapidly toward six figures.
Of course, much depends on macroeconomic factors and overall market sentiment. Bitcoin’s current rally has been supported by positive developments, such as rising institutional interest and increasing adoption in both retail and corporate sectors. Additionally, with Bitcoin ETFs gaining traction and regulatory clarity slowly emerging in key markets, the fundamental backdrop for Bitcoin looks strong.
As Bitcoin eyes the $95,000 mark, its next move will be closely tied to the behavior of USDT dominance. A breakdown in USDT dominance below 5.2% could be the key catalyst that propels Bitcoin into its next bullish phase. Investors and traders should keep a close watch on this critical metric, as it could provide valuable insights into where the market is headed next.
For now, Bitcoin continues to hover around the $68,000 level, with strong resistance at $70,300. If USDT dominance declines and Bitcoin breaks through this resistance, the path to $95,000 and beyond could open up, potentially marking the beginning of a new era for the leading cryptocurrency.
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