Bitcoin (BTC), the largest cryptocurrency by market capitalization, closed January above the $40,000 threshold, signaling positive price action. However, market expert Justin Bennett believes that Bitcoin has not yet reached its bottom.
Bennett's analysis highlights the possibility of further price declines, with Tether's stablecoin USDT dominance chart (USDT.D) pointing to possible bearishness.
Tether’s dominance signals concerns about BTC price
Bitcoin’s recent price rally and ability to break above $40,000 have ensured this optimism among investors. Nevertheless, Bennett believes that further price declines could follow after a retest of the mid-$44,000 level.
Bennett highlights the inverse relationship between Tether dominance and Bitcoin. According to his analysis, the levels on the Tether dominance chart have been reliable indicators of Bitcoin price movements since October.
Tether’s USDT dominance is growing. Source: Justin Bennett on X
According to Bennett's analysis, as shown in the graphic above, The dominance of Tether could see a potential increase from current levels of 6%. This increase could bring it closer to the 8% mark.
In such a scenario, Bitcoin Performance would likely move in the opposite direction, indicating possible price declines soon.
On January 25, Bennett suggested that Bitcoin could fall another 20% from its current level, which would take it to around $30,000. If this scenario comes true, it would be crucial for Bitcoin bulls to defend the $30,000 level to maintain the current bullish structure.
A break below $29,000 would give bears a stronger position as only three key support levels remain at $28,400, $25,900 and $24,000 before a possible retest of $20,000.
The performance of these support levels and Bitcoin's resilience increased Selling pressure will be key factors to monitor. Future market sentiment will also play an important role in determining the price movement of Bitcoin.
Bitcoin is experiencing an outstanding accumulation trend
Despite the possibility of further price declines, renowned crypto analyst Ali Martinez has shed light on a notable trend in BTC recently accumulation Streak of investors.
After According to Ali Martinez's analysis, Bitcoin is experiencing a significant accumulation streak that rivals some of the most notable periods in recent years.
The Accumulation Trend Score, a metric that measures purchasing activity larger unitshas remained consistently high over the past four months and is close to 1.
BTC’s Accumulation Trend Score shows an upward trend. Source: Ali Martinez on X
This suggests that influential market participants are actively accumulating Bitcoin, signaling their confidence in the cryptocurrency's long-term potential.
Martinez's Observations also suggest that Bitcoin's price range around $42,560 has emerged as a highly significant area of interest.
A total of an impressive 912,626 BTC were transacted within this range. This is expected to be significant Support levelThis could potentially prevent further downside and encourage increased buying interest.
These trends combine to contribute to a positive market outlook, suggesting that Bitcoin remains an attractive asset for long-term investment despite possible price declines.
The daily chart shows BTC’s sideways price movement between $42,900 and $43,000 over the last 24 hours. Source: BTCUSDT on TradingView.com
Featured image from Shutterstock, chart from TradingView.com
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