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

Dalmas Ngetich

1 year ago

2 mins read

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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.

Feature image from Shutterstock, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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