Record High and Subsequent Decline
Bitcoin has declined by 15% in the past week after reaching its record high of around $108,365, according to data from Bitstamp. This decline may be a precursor to further price drops in the coming weeks due to a sharp recovery in Tether market dominance.
USDT Dominance Index: A Signal for Bitcoin Price Action
The USDT.D metric, which measures Tether’s share in the overall cryptocurrency market, has been steadily increasing since its support levels last seen in March. This rebound is similar to what occurred when USDT.D reached 3.80% near the local top of $73,800.
BTC/USD and USDT.D Weekly Performance Comparison
The ForexX Mindset contributor points out that this increase in Tether dominance often precedes a downturn in Bitcoin prices. The analyst warns traders to ignore short-term price gains, as they may be part of an institutional ambush.
Institutional Ambush: A Trap for Retail Traders?
The ForexX Mindset believes that dark pools and whales are deliberately pumping up Bitcoin prices to lure retail investors into the market. These larger players then offload their holdings at local highs, leaving smaller investors with significant losses.
Bearish Outlook and Downside Targets
Bitcoin is experiencing a correction after failing to break above the 1.618 Fibonacci extension level near $102,734. The weekly relative strength index (RSI) has entered overbought territory while showing bearish divergence with respect to its prices forming higher highs.
BTC/USD Weekly Price Chart
The current price of Bitcoin is trading near $96,000. If the correction deepens, the next downside target could be the 20-week exponential moving average (EMA) around $81,500. A further decline may see Bitcoin retesting the 50-week EMA near $67,700, which aligns with the 1.0 Fibonacci retracement level.
Record-High Target of $150,000 by Mid-2025
While a correction seems imminent, multiple analysts have predicted that Bitcoin could rally toward $150,000 by the first half of 2025 if it claims the 1.618 Fib line as support.
Trading and Investment Risks
This article does not contain investment advice or recommendations. Every trading and investment move involves risk, and readers should conduct their own research when making a decision.
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