Bitcoin is on the rise after recently regaining above $60,000 over the past day. Amid this price performance, renowned cryptocurrency analyst Mags on Elon Musk’s social media platform X shared his latest Asset Analysis.
According to Mags, Bitcoin could be poised for a significant rally, fueled by factors related to USDT’s (USDT.D) dominance and emerging technical chart patterns.
Bitcoin on the Threshold of $72,000 Increase?
Mags explained that the inverse correlation between USDT dominance and Bitcoin price is a key indicator to watch. USDT dominance refers to Tether’s (USDT) market share in the overall cryptocurrency market, and its movements can often signal changes in Bitcoin price.
Mags noted that USDT.D recently broke through a forceful support trendline and is currently testing a breakout point, which could lead to the formation of a descending channel.
Meanwhile, Bitcoin is forming an expanding wedge pattern, typically seen as a bullish continuation signal. If USDT.D continues to fall, Mags predicts Bitcoin could see a noticeable “upswing,” potentially taking the price to $72,000 or higher.
#Bitcoin incoming pump?
If you follow USDT.D, you probably already know about the inverse correlation between USDT.D and BTC.
Looking at the chart, USDT.D has broken through a forceful trend support line and is currently testing a breakout point with the possibility of… photo: twitter.com/lqZ6SPCgaQ
— Mags (@thescalpingpro) August 22, 2024
Rising Volatility: Catalyst for BTC’s Next Move?
Apart from technical indicators, another factor contributing to the growing anticipation of a bitcoin price rally is the recent enhance in market volatility.
Bitcoin volatility has surpassed levels unseen in recent months and continues to rise, which could be a potential catalyst for significant bitcoin growth.
Cryptocurrency Analyst Daan Crypto Trades illuminated This development was described in a recent post on X, noting that after a period of low volatility, Bitcoin’s volatility levels are rising again, approaching levels seen earlier this year when the asset was hitting all-time highs.
Daan Crypto Trades emphasized that this enhance in volatility is needed to end Bitcoin’s consolidation, which could potentially lead to decisive price moves in one direction or the other.
#Bitcoin After a edged decline in volatility, it is now rising again and approaching the levels we saw earlier this year, reaching record highs.
This is what is ultimately needed to put an end to this mass consolidation in one way or another. photo:twitter.com/CHoZXHk5K4
— Daan Crypto Trades (@DaanCrypto) August 21, 2024
Featured image created with DALL-E, chart from TradingView
