The key is in the USDT? Bitcoin (BTC) price is holding above $16,000. According to traders and analysts, it should soon fall to its bottom, and then enter a macro bull cycle.
Bitcoin price close to bottom
Bitcoin price rises to $16,492 on Bitfinex today, November 29, 2022. Cryptocurrency is trading at $16,492 at the time of writing this article. Its price is currently registering a daily gain of 1.76%. Some indicators indicate an imminent bottom, while others would announce the next bullish cycle of Bitcoin.
The team of whalemap thus shared a graph, paralleling the value of the Spent Output Profit Ratio (SOPR) with the Bitcoin price. On a daily basis, the SOPR dropped to a level as low as 2018.
Referring to the current SOPR, the Whalemap team estimates that ” Bitcoin is getting closer and closer to a bottom “.
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New bullish cycle: irrational optimism or convincing signal from Tether?
the trader HornHairs shared a chart that compares the price action of Bitcoin and the dominance of Tether (USDT) over three weeks. The graph shows that this dominance is close to a major inflection point and currently presents a bearish divergence over this three-week period.
HornHairs points out that major USDT inflection points “signalled macro cycle changes in BTCUSD before”. The trader points in particular to the bottom of 2019, the “ run-up of 2020, and the peak of 2021.
The current bearish divergence from Tether dominance would then be a “sign of a new uptrend coming for bitcoin.
The dollar and the Tether down, conditions for a recovery of the crypto markets?
HornHairs is not alone in issuing bullish forecasts based on USDT dominance. The analyst TechDev also shared a graph that shows the parallel fluctuations of the market capitalization of crypto markets in general, this dominance of Tether, and the evolution of the dollar (DXY).
TechDev highlighted the fact that the dollar tends to outpace USDT dominance. Based on this assumption and on the graph, this dominance would thus be about to fallfollowing a drop in the dollar that has already taken place.
The graph also shows an idea of negative correlation between the market capitalization of crypto markets and the dominance of Tether. If the latter were indeed to drop, in theory, the total market cap of cryptocurrencies should then rise again.
The current context makes it difficult to imagine that a bullish macro cycle could soon begin, after the price of Bitcoin has finally touched this bottom, which would be imminent according to a growing number of indicators.
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