Is Bitcoin Ready to Soar? Key Indicators Signal Potential $72K Target
Bitcoin is seeing an uptick following its recent reclaim above the $60,000 mark in the past day. Amid this price performance, renowned crypto analyst Mags on Elon Musks social media platform X shared his latest asset analysis.
According to Mags, Bitcoin could be poised for a major rally, driven by factors related to the USDT dominance (USDT.D) and the forming technical chart patterns.
Bitcoin On The Verge Of A $72,000 Rally?
Mags explained that the inverse correlation between USDT dominance and Bitcoins price is a key indicator to watch. USDT dominance refers to the market share of Tether (USDT) in the overall cryptocurrency market, and its movements can often signal shifts in Bitcoins price.
Mags pointed out that USDT.D recently broke down from a strong trendline support and is currently testing the point of breakdown, which could lead to forming a bear channel.
Meanwhile, Bitcoin forms a broadening wedge pattern, typically seen as a bullish continuation signal. If USDT.D continues to decline, Mags anticipates that Bitcoin could see a notable leg up, potentially pushing the price to $72,000 or higher.
#Bitcoin pump incoming ?
If youve been paying attention to USDT.D, you already know about the inverse correlation between USDT.D and BTC.
Looking at the chart, USDT.D broke down a strong trendline support and is currently testing the point of breakdown with a possible pic.twitter.com/lqZ6SPCgaQ
Mags (@thescalpingpro) August 22, 2024
Volatility on the Rise: A Catalyst for BTCs Next Move?
In addition to the technical indicators, another factor contributing to the growing anticipation of a Bitcoin price surge is the recent increase in market volatility.
Bitcoins volatility has surpassed levels not seen in the past months and has continued to rise, which could be a potential catalyst for Bitcoin to see a significant break out towards the upside.
Crypto analyst Daan Crypto Trades highlighted this development in a recent X post, noting that after a period of low volatility, Bitcoins volatility levels are ramping back up, approaching the levels seen earlier this year during the assets all-time highs.
Daan Crypto Trades emphasized that this volatility increase is needed to end Bitcoins consolidation, potentially leading to a decisive price movement in one direction or the other.
#Bitcoin After a big slump in volatility levels, its now ramping back up and getting close to levels we saw earlier this year at the all time highs.
Its whats eventually needed to put an end to this massive consolidation in one way or another pic.twitter.com/CHoZXHk5K4
Daan Crypto Trades (@DaanCrypto) August 21, 2024
Featured image created with DALL-E, Chart from TradingView
Text source: NewsBTC
