Bitcoin Price Prediction As Tether Ends USDT Support On BTC Blockchain – Will Crypto Prices Keep Falling?

Bitcoin (BTC), the world’s largest cryptocurrency, has been on a downtrend for the past few months, with its price falling from $28,000 to around $26,220 today.

This drop can be partially attributed to Tether’s recent move. Tether, the leading stablecoin, has decided to stop supporting USDT on the Bitcoin blockchain.

Bitcoin can no longer be used to trade USDT, affecting its value and potentially increasing market volatility. This change could discourage businesses from accepting bitcoin.

The long-term effects are uncertain, but could have a significant impact on the Bitcoin market.

Elon Musk’s sale of his BTC holdings and broader sell-offs are major contributors to the decline.

With that in mind, traders suspect Musk may be hinting at a new investment. Recently, bitcoin price fell 10% to bottom at $26,220 and further falls seem likely.

Tether’s USDT strategy change and its potential impact on the Bitcoin market

Tether, the issuer of the USDT stablecoin, is changing its strategy by dropping USDT support for Bitcoin, Kusama, and Bitcoin Cash.

This is due to low usage and security concerns. Tether will no longer mint USDT on these platforms, but users can still redeem their USDT for a year.

They can also trade their affected USDT on platforms like Bitfinex.

Tether may consider reissuing USDT on Bitcoin’s Omni layer if usage increases.

They are also looking at working with RGB for future issuance of USDT on layers 2 and 3 of Bitcoin. This shift is intended to improve the security and efficiency of Tether’s issuance strategy.

Tether’s decision to end USDT support for Bitcoin could pose a risk to the Bitcoin market.

As USDT is widely used in cryptocurrencies, its lower availability at the Bitcoin Omni level could lead to lower liquidity and trading.

This shift could fuel uncertainty and potentially put downward pressure on bitcoin price, as evidenced by the recent drop to $26,220.

Bitcoin Price Prediction

Bitcoin recently saw a significant drop, plunging from $29,000 to $26,000 in a matter of days.

It is currently in the process of establishing a sense of support near the $26,200 level with a conclusion of a questionable candlestick pattern.

Digging deeper into this matter, the possibility of a bullish correction gains credence when examining indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD).

Both indicators have reached the overbought territory, which suggests a plausible scenario for a corrective bullish move, especially if the price stays above $26,200.

In contrast, levels of 23.6% and 38.2% represent key points along the way and correlate with potential support and resistance levels.

Bitcoin price chart – Source: Tradingview

These levels are forecast to materialize around $25,600 as targeted support and $26,800 and $27,200 as notable resistance barriers.

Additionally, sustained fluctuations could potentially expose bitcoin price to the subsequent $28,000 resistance level, delineated by the 61.8% Fibonacci corrective level.

Alternatively, a break below $26,200 has the potential to lead to further depreciation that might extend to $25,600.

However, given the current market conditions, the focus seems to be on the $26,200 level. If sustained, this level should attract buying interest, while a break of this level could trigger the initiation of short positions.

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