Bitcoin Price To $150,000: Why The USDT Dominance Plays An Important Role

Scott Matherson

4 months ago

3 mins read

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Bitcoin has extended its consolidation below $100,000 since the beginning of February. This price lag has been compounded by a slowdown in bullish sentiment among investors and a slowing euphoria regarding the crypto-positive influences of Trump’s new administration in the US.

Despite this rally slowdown, technical analysis continues to support a bullish long-term outlook for Bitcoin. The current stagnation appears to be a re-accumulation phase for bullish investors; a pattern observed multiple times before major upward moves this cycle. Furthermore, analysis shows that the USDT dominance is going to play a crucial role in triggering the next Bitcoin rally toward $150,000.

Bitcoin’s Re-Accumulation Phase And The Role Of USDT Dominance

According to a technical analyst (TradingShot) on the TradingView platform, Bitcoin is currently exhibiting an interesting accumulation trend alongside the USDT dominance. The USDT dominance reflects the percentage of the total crypto market capitalization in USDT, indicating whether traders favor stablecoins over riskier crypto assets. A high USDT dominance typically signals low buying pressure in cryptocurrencies. Conversely, a declining USDT dominance often suggests that traders are rotating funds back into Bitcoin and other cryptocurrencies.

Interestingly, the USDT dominance has had a crucial simultaneous occurrence with Bitcoin’s preparations for rallies this cycle. Two notable re-accumulation periods have occurred after Bitcoin bottomed in November 2022, with each leading to significant price rallies. The first accumulation period spanned from January 2023 to March 2023, while the second occurred between November 2023 and February 2024. Both of these re-accumulation phases took place at the 0.5 Fibonacci extension level from an earlier accumulation phase. Additionally, these phases shared common characteristics, including a peaking 1-day RSI structure in the USDT dominance chart and a pullback in the Dollar Index (DXY).

Now, Bitcoin appears to be mirroring the same conditions again, with USDT dominance and the DXY pulling back with the current re-accumulation phase, which has been playing out since December 2024. If the pattern continues to unfold as expected, this could indicate that Bitcoin is on the verge of its next major rally.

USDT To Send BTC To $150,000

If Bitcoin follows the pattern observed in previous rallies this cycle with the USDT dominance to the core, the re-accumulation phase could end within the next one or two weeks and eventually cause another rally to new all-time highs.

In terms of a target, the analyst noted a potential $150,000 target for the Bitcoin price, at least before another major correction and a subsequent accumulation phase. However, Bitcoin must overcome key resistance levels, particularly the psychological $100,000 mark, which has served as a major hurdle in recent weeks.

At the time of writing, Bitcoin is trading at $97,175, up by 1.6% in the past 24 hours. A move to $150,000 will represent a 54% increase from the current price.

Featured image from Pexels, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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