USDT Dominance Falling, Analyst Predicts Bitcoin To Reach $80,000

Source Newsbtc

Though Bitcoin prices are fast-dropping, looking at events in the daily chart, one analyst thinks the coin is gearing up for a comeback, citing developments in the USDT dominance chart, or USDT.D. 

USDT Dominance Falling, Good For BTC?

Taking to X on April 29, the analyst said USDT.D recently fell, breaking below a critical support trend line. Thus far, USDT.D faces strong rejections at immediate resistance levels, signaling weakness.

All this, while considering the inverse relation the USDT.D chart has with Bitcoin, the analyst now expects the world’s most valuable coin to tear higher, reversing recent losses and rejuvenating the broader crypto scene.

USDT dominance chart | Source: TradingView

To understand what’s going on, one has to understand what the USDT.D chart represents. In essence, it compares the market capitalization of USDT, the world’s largest stablecoin, versus the total market capitalization of other stablecoins, including USDC, DAI, FUSD, and every other USD-pegged asset.

This chart reflects the dominance of USDT in the stablecoin scene. However, analysts have also been using this chart to gauge sentiment and correlation with Bitcoin. 

As expected, USDT.D and Bitcoin, analysts note, enjoy an inverse correlation. Since stablecoins like USDT act as a safe haven when prices are plunging, USDT.D will rise when BTC prices are plunging and fall whenever Bitcoin is tearing. 

Following the drop below the support trend line and dipping USDT dominance, the analyst predicts Bitcoin prices will stabilize and even expand in the sessions ahead. So far, BTC is under pressure, shrinking by over 15% from all-time highs.

Meanwhile, the USDT.D chart has found resistance. If it rejects, it could signal the resumption of Bitcoin’s early Q1 2024 uptrend.  

Bitcoin Bears Pressing On: Next Stop $60,000?

Currently, Bitcoin is trending lower but above $60,000. Despite the slowdown, the possibility of BTC finding traction and expanding, even reclaiming $73,800, cannot be discounted.

The analyst expects a “massive leg up” for Bitcoin should USDT.D continue falling, aligning with the support trend line break. According to the analyst’s projection, BTC can rally above the all-time high towards $80,000 or even higher.

Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView

Even so, though the analyst is optimistic, BTC prices will not be guaranteed to fly because of shrinking USDT dominance.

Shifting market dynamics, including institutional adoption via spot Bitcoin exchange-traded funds (ETFs) and even regulatory developments, such as the United States Securities and Exchange Commission (SEC) initiating charges against stablecoins as it did for BUSD, can impact Bitcoin prices or USDT dominance.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, 2024
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
XRP Price Prediction: Fibonacci And Elliott Wave Analysis Suggests $15 By May 2025Egrag Crypto, a well-known crypto analyst on the social media platform X, recently shared an optimistic price prediction for XRP. According to the analyst, technical analysis of the XRP price on the
Author  NewsBTC
Dec 30, 2024
Egrag Crypto, a well-known crypto analyst on the social media platform X, recently shared an optimistic price prediction for XRP. According to the analyst, technical analysis of the XRP price on the
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Gold Price Forecast: XAU/USD attracts some sellers below $3,250 on firmer US DollarThe Gold price (XAU/USD) extends the decline to around $3,245 during the early Asian session on Thursday. The precious metal edges lower to near a two-week low amid easing US-China trade tensions and stronger US Dollar (USD) demand. 
Author  FXStreet
May 01, Thu
The Gold price (XAU/USD) extends the decline to around $3,245 during the early Asian session on Thursday. The precious metal edges lower to near a two-week low amid easing US-China trade tensions and stronger US Dollar (USD) demand. 
goTop
quote