Bitcoin has returned to the spotlight after its price movement showed a pattern pointing to a possible breakout to its all-time high. The price structure formed so far appears healthy, with an uptrend punctuated only by minor corrections.
On the other hand, when the price briefly tested the resistance area, there was no significant rejection. Instead, a bullish change of character (CH) emerged, strengthening the trend direction.
The supporting trend line has also become clearer, seemingly providing a foothold for the market to push the price upward. From a technical perspective, this opens up the opportunity for Bitcoin to approach its previous all-time high, or even set a new record, before the market eventually enters a natural correction phase.
Bitcoin gains strength as USDT dominance weakens
BehDark, an analyst who closely follows this market movement, emphasizes the importance of observing the USDT Dominance chart. The two are almost always inversely related: when USDT dominance decreases, Bitcoin usually receives a boost.
Currently, the downtrend in USDT Dominance continues. The previous upward correction has now broken, without producing a new higher high. In fact, signs of a bearish CH are starting to appear clearly on the chart.
Furthermore, there’s a strong chance that USDT Dominance will only make a brief pullback to the flip zone, then continue its decline to lower levels. There’s even a possibility that Tether’s dominance could move towards the previously projected green zone.
If this condition materializes, the weakening stablecoin dominance will provide more room for Bitcoin and Ethereum to break new highs in the market.
However, this doesn’t mean traders can take positions carelessly. In fact, opening short positions in this situation can be high-risk. With technical trends supporting a bullish trend, the potential for a new all-time high is greater than in a direct correction scenario.
Furthermore, market psychology also plays a role. Many market participants view every small correction as an entry opportunity, thus maintaining buying pressure.
When Bitcoin’s price approaches a key level, a surge of euphoria often emerges, and this could provide additional fuel for the next rally.
So, while technical analysis and Tether’s dominance are signaling alignment, the crypto market story remains full of surprises. The question is, is Bitcoin truly poised to set a new record soon, or are we simply witnessing a brief pause before a deeper correction?