Justin Bennett, a cryptocurrency analyst and trader, warned that Bitcoin (BTC) has likely not seen the final stages of its correction yet.
Bennett Tells With his 110,800 followers on social media platform X, the dominance chart of Tether (USDT.D) is flashing bearish relative to Bitcoin.
Traders often watch the USDT.D chart because it shows how much of the cryptocurrency market capitalization consists of the stablecoin Tether (USDT). A bullish USDT.D chart is traditionally interpreted as bearish for Bitcoin and other cryptocurrencies because it indicates that traders are unloading their cryptocurrency holdings in favor of the stablecoin.
Bennett expects the USDT.D pair to rise after rebounding from a critical support level.
“Is there another 20% drop for BTC from current levels?
This is what the chart of Tether's dominance over USDT.D suggests. This moves inversely to Bitcoin, and levels have been marked on this chart since October. BTC will place around $30,000. let's see.”
he is too He says His predictions still stand despite Bitcoin's recent rise to around $42,000. He notes that Bitcoin could see a comfortable rally to around $46,000 before falling to its downside target.
“Sticking to the same Bitcoin plan since the sell-off on January 12. The key to relief was getting back $41,240.
Fill the defect before less.
let's see.”
Bitcoin is trading at $41,851 at the time of writing, up more than 4% in the past 24 hours.
Bennett too save We closely monitor the US Dollar Index (DXY), which is a measure of the value of the US dollar against a basket of six major currencies.
According to Bennett, the DXY appears poised for a bullish reversal.
“The DXY is still falling, and I remain as optimistic as I have been since January 2nd. 103.50 and 104.20 are resistance. A sustained break above 104.20 in the coming weeks would flip the recent trend from bearish to bullish and put pressure on risky assets like stocks and cryptocurrencies.
Nullifying the ongoing break below 102.60.”
The strong DXY indicator indicates that investors are moving their money into the US dollar and away from risky assets like Bitcoin.
At the time of writing, the DXY is trading at 103.47.
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