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Bitcoin Eyes $150K as USDT, DXY Patterns Align

Coin WorldWednesday, Feb 19, 2025 12:52 pm ET

1min read

Bitcoin's price has been consolidating below $100,000, but technical indicators and its relationship with Tether (USDT) suggest a potential breakout towards $150,000. According to prominent online trading expert TradingShot, a key technical pattern involving USDT dominance and the U.S. Dollar Index (DXY) hints at a major rally on the horizon.

TradingShot's analysis, published on February 19, indicates that Bitcoin's current price action resembles re-accumulation phases observed during previous bullish legs since the November 2022 bottom. These phases have historically preceded strong price surges, and the present market structure seems to be following a similar trajectory.

One of the most striking indicators comes from USDT dominance, which is forming a peaking one-day RSI structure that has historically preceded Bitcoin breakouts. Simultaneously, the U.S. Dollar Index is pulling back, a pattern that has fueled Bitcoin rallies in the past. Technically, Bitcoin is hovering near the 0.5 Fibonacci retracement level, a key support in past surges. If this holds, Fibonacci analysis suggests a breakout could push Bitcoin as high as $150,000, aligning with historical trends where Bitcoin surged after similar USDT dominance and DXY movements.

However, Bitcoin's relationship with Tether may soon impact the market. Tether may need to sell part or all of its $8 billion Bitcoin holdings to comply with proposed U.S. stablecoin regulations. If Tether sells its Bitcoin holdings, it could lead to increased selling pressure, potentially driving Bitcoin's price lower due to the sudden influx of supply.

Bitcoin has recently lost momentum above the $100,000 zone, with the asset being impacted by uncertainty stemming from inflation, the anticipated Federal Reserve interest rate decision, and ongoing trade wars. However, most analysts' long-term sentiment around Bitcoin remains intact, with the $100,000 spot as the key anchor for the next leg up.

Pseudonymous cryptocurrency analyst El_crypto_prof analysis suggests that Bitcoin is testing the upper resistance of a falling wedge pattern, a historically bullish setup often preceding a breakout. As things stand, BTC is forming lower highs and lower lows, with repeated support touches and resistance tests. Currently trading around $95

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