In a tweet on October 31, seasoned price action trader Justin Bennett asserted that Tether (USDT’s) dominance has to break its upward trend for the latest crypto rally to continue.
While Bennett concedes that there are other stablecoins, he asserts that USDT remains at the top.
Notably, traders often see stablecoin flows as indicators of buying strength in the crypto markets. The increased flow of stablecoins to exchanges usually indicates strong buying power and bullish momentum. Moreover, it signals an appetite for risk amongst investors who have stayed on the sidelines as they are likely to exchange their stablecoins for other crypto assets.
It bears mentioning that the crypto markets have enjoyed a relief rally that kicked off last Tuesday. The positive surge saw Bitcoin clinch the $21k price point at one point while taking Ethereum above $1500. Eight founder Michaël van de Poppe, commenting on the market surge, attributed the price action to falling yields and a weakening dollar index (DXY).
It is worth noting that the outlook of analysts who predicted the rally is currently not positive.
Ali Martinez, a famous Bitcoin analyst who predicted the rally in a tweet yesterday, highlighted that Bitcoin had flashed a sell signal in the 4-hour time frame that could take the price below $20k again. So, according to Martinez, the asset’s price has to close above $21k to ensure a continued run-up.
In a follow-up tweet hours after that, Martinez said that while Bitcoin has strong demand at the $19k to $20,700 price range, the critical resistance remains the $21k price point and $23k after that should it continue to press onward.
On the other hand, il Capo Crypto, another analyst who predicted the run-up to $21k, is confident that the price of Bitcoin is set to drop to the $14k price point, possibly in Mid November. Notably, the renowned crypto analyst shared a Twitter poll asking for the next price direction for Bitcoin, giving $14k as the only option. The analyst had shared his chart hours ago, highlighting that the price of Bitcoin appeared to be moving as he expected.
Meanwhile, veteran trader Peter Brandt in a recent CoinDesk TV’s First Mover episode, said he expects one last “blowoff” in Bitcoin. Notably, Brandt puts the price bottom at $13k.
However, not all analysts are pessimistic. For example, as reported by ZyCrypto on October 20, Bloomberg Intelligence analyst Mike McGlone believes that the bottom is likely in, and the price of Bitcoin will likely surge soon.