Cryptocurrency analyst and trader Justin Bennett warns that Bitcoin (BTC) is likely not yet in the final stages of a correction.
Bennett To tell 110,800 followers on social media platform X pointed out that the Tethered Dominance Chart (USDT.D) is showing bearish signs for Bitcoin.
Traders often focus on the USDT.D chart, which shows how much of the crypto market capitalization is made up of the stablecoin Tether (USDT). A bullish chart for USDT.D has traditionally been interpreted as bearish for Bitcoin and other cryptocurrencies, as it indicates traders are dumping their crypto holdings in favor of stablecoins.
Bennett expects USDT.D to move higher after rebounding from key support levels.
“Will BTC fall another 20% from current levels?
The chart of Tether-dominated USDT.D suggests this. This moves inversely to Bitcoin, and this chart level has been exactly where it has been since October. If that happens, BTC will be worth around $30,000. Let's take a look. “
He also To tell Despite Bitcoin's recent rally to around $42,000, he says his predictions have come true. He suggests that Bitcoin could recover to around $46,000 before falling to its downside target.
“I have maintained the same BTC plan since the crash on January 12th. The key to my rescue was the return of $41,240.
Please fill in any imbalances before lowering.
Let's take a look. “
At the time of writing, Bitcoin was trading at $41,851, up more than 4% in the past 24 hours.
Bennett too maintain Keep an eye on the US Dollar Index (DXY), which measures the value of the US dollar against a basket of six major currencies.
According to Bennett, DXY appears poised for a bullish reversal.
“DXY is still swirling, but I'm still as bullish as I've been since January 2nd. 103.50 and 104.20 are resistance. A sustained break above 104.20 in the coming weeks would indicate a bearish trend on the recent trend. There will likely be a bullish turnaround, putting pressure on risk assets such as stocks and cryptocurrencies.
A sustained break below 102.60 will be void. ”
A strong DXY suggests investors are moving money away from risky assets like Bitcoin and into the US dollar.
At the time of writing, DXY is trading at 103.47.
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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