According to recent market analysis, Tether’s rising dominance signals a possible bearish shift in Bitcoin. The opposite trend between Tether and Bitcoin suggests that Bitcoin’s recent rally may not last. Investors are watching Tether’s upward momentum as a sign of possible future volatility in the Bitcoin price
Tether Dominance (USDT.D) has recently attracted market attention as it could indicate a bearish trend in Bitcoin going forward. In a recent X post, Alan Santana pointed out that USDT’s increasing market share could indicate a change in Bitcoin’s trend.
#USDT 📈 Tether’s dominance says Bitcoin is falling
The decline in Tether Dominance ended in March 2024. If you look at the chart before this date, there is only bearish movement with lower highs and lower lows.
The last drop was very steep, creating a rounded bottom. From this… pic.twitter.com/ZvQh31khAi
— Alan Santana (@lamatrades1111) October 26, 2024
Tether Dominance has been in a bearish trend for most of the first quarter of this year, featuring a series of falling lows and falling highs. Nevertheless, in March 2024, this trend changed dramatically and a rounded bottom formed on the chart, indicating a possible rebound for USDT.D.
Impact of Tether on Bitcoin
Tether’s recent price action has been very organized within a symmetrical range bounded by an upward trendline with heavy volume on the bullish side. Whenever USDT.D approaches the lower limit of this channel, the asset typically bounces off this level, coinciding with a decline in BTC price, creating a clear inverse correlation in the relationship between the two assets.
The upward movement in USDT dominance in late October has reinforced this trend, leading to speculation that recent Bitcoin growth may be temporary. Some investors see this as a sign of a flight to quality, and this trend typically occurs before Bitcoin volatility reappears.
Tether has become more important as a reference within the cryptocurrency market, especially during times of high volatility. A rise in USDT.D could lead to investors moving to stable assets, which could be bearish for Bitcoin in the coming days.
Expanding Tether’s Market Influence
The recent rise in USDT has caused Bitcoin investors to pay close attention to market conditions. This is because the two assets tend to trend in opposite directions before a major change. Cryptocurrency markets are also watching USDT.D as a potential indicator of what will happen next with Bitcoin.
Tether remains a dominant force in the market, and its increasing market share is a warning sign for those with exposure to Bitcoin. With USDT being the dominant player in the market, this development could be an indication of where Bitcoin is heading, and therefore market participants should pay attention in the coming days.
