- Expert analysis suggests Bitcoin may retest $30K, influenced by Tether dominance.
- Significant accumulation trend in Bitcoin signals confidence among investors.
- Crucial support levels and market sentiment play pivotal roles in Bitcoin’s future trajectory.
Bitcoin (BTC), the premier cryptocurrency, concluded January with a surge above the $40,000 mark, bringing a glimmer of hope to investors. However, expert analysis from Justin Bennett indicates that the bottom for Bitcoin’s price may not yet be in sight.
Bennett’s insights shed light on potential downward movements, with a particular focus on Tether’s stablecoin dominance (USDT.D) chart, which suggests looming concerns for BTC’s price trajectory.
While Bitcoin’s recent price resurgence has instilled optimism, Bennett warns of possible declines, hinting at a retest of the mid $44,000 range. Drawing attention to the inverse correlation between Tether dominance and Bitcoin, Bennett’s analysis suggests that an increase in Tether’s dominance could precede price drops in Bitcoin.
Based on Bennett’s assessment, if Tether’s dominance inches closer to the 8% mark from its current 6%, Bitcoin could face a significant downturn, potentially revisiting the $30,000 level.
Highlighting the significance of this threshold, Bennett emphasizes the importance for Bitcoin bulls to defend the $30,000 mark to sustain the current bullish momentum. Failure to do so could embolden bears, with support levels at $28,400, $25,900, and $24,000 potentially tested before a potential retest of $20,000.
Monitoring Bitcoin’s resilience against selling pressure and the sentiment of the market will be pivotal in determining its future price movements.
In a contrasting view, renowned crypto analyst Ali Martinez identifies a notable trend of accumulation in Bitcoin. Martinez’s analysis suggests a robust accumulation streak, with the Accumulation Trend Score consistently high over the past four months.
This trend underscores the confidence of significant market players in Bitcoin’s long-term prospects. Notably, Martinez highlights a key interest zone around $42,560, where substantial Bitcoin transactions have occurred, potentially acting as a stronghold against further downside risks.
Despite the specter of price drops, the ongoing accumulation trend and the establishment of crucial support levels indicate a positive market sentiment, reaffirming Bitcoin’s appeal as a viable long-term investment asset.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.