14 August 2024
The Bitcoin (BTC) price has broken free from its recent consolidation phase, breaching the $60,000 mark and setting its sights on critical resistance levels essential for propelling the cryptocurrency to new all-time highs (ATHs).
This surge comes amid emerging bullish momentum in the world’s largest digital asset. However, the key to continuing this breakout is the influential role of Tether (USDT), the largest stablecoin in the crypto ecosystem.
USDT Minting Could Propel Bitcoin Beyond $73,700?
According to technical analysts, such as Doctor Profit, the continuous minting of USDT by its issuer could be the decisive factor that pushes Bitcoin to surpass its previous record high of $73,700 reached in March this year.
In a recent social media post, Doctor Profit highlighted the significance of Tether’s activities in the current Bitcoin price dynamics.
Despite Bitcoin’s consolidation below the $60,000 mark over the past 48 hours, Doctor Profit noted that Tether has continued to print more USDT, with its market capitalization increasing by 13.6% since Bitcoin’s all-time high in March.
“Usually, Tether market cap needs to drop in a bear market or strong correction,” Doctor Profit observed. “However, this move indicates that Tether is heavily printing during this sideways period for the next leg up. We now have $15 billion worth of USDT that has not been injected into the markets yet.”
The analyst further pointed out that just today, an additional $1 billion in USDT was minted, suggesting that the crypto market seems to be ignoring this “bullish fact.” Doctor Profit concluded that Tether will ultimately “decide when to send BTC to a new ATH.”
Inflation And CME Gaps
Echoing this bullish analysis, crypto analyst Ali Martinez also noted that Bitcoin forms a symmetrical triangle pattern on the lower time frames.
According to Martinez, a daily close outside the $59,000 range seen in the past 48 hours could trigger a spike of up to 4.8% for BTC. Currently, BTC is trading at $61,350, up only 2.8% in the last hours of Tuesday’s trading session.
Adding to the bullish momentum, the latest Producer Price Index (PPI) data in the United States has come in lower than expected, suggesting that inflationary pressures may be easing more than anticipated.
This, in turn, could influence the Federal Reserve’s decisions on interest rates, potentially leading to rate cuts that could ultimately benefit crypto assets.
Another analyst, Rekt Capital, also remains optimistic about Bitcoin’s recent price action, noting that the cryptocurrency’s most recent rebound has allowed it to re-fill the CME Gaps that were previously placed between $59,400 and $62,550.
Rekt believes that building a support base within these CME gaps is crucial to establishing a bullish directional bias. It remains to be seen if these bullish signs can be sustained in the coming days and how high the BTC price can go.
Featured image from DALL-E, chart from TradingView.com