February 14, 2025
Expert Analysis: Bitcoin 'Bottom Is Not In', Potential Retest of $30K on the Horizon

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Bitcoin (BTC), the largest cryptocurrency by market capitalization, closed January above the $40,000 threshold, indicating positive price action. However, market expert Justin Bennett suggests that Bitcoin’s bottom has not been reached yet.

Bennett’s analysis highlights the possibility of further price declines, with Tether’s stablecoin USDT Dominance (USDT.D) chart indicating a potential decline.

Tether Dominance Prompts Concern for BTC Price

Bitcoin’s recent price correction and its ability to surpass the $40,000 level has provided optimism among investors. Nevertheless, Bennett believes that prices could fall further after retesting the mid-range of $44,000.

Bennett highlighted the inverse relationship between Tether dominance and Bitcoin. According to their analysis, Tether dominance chart levels have been a reliable indicator for Bitcoin’s price movements since October.

Tether’s USDT dominance increases. Source: Justin Bennett on X

According to Bennett’s analysis, Tether’s dominance could potentially experience an increase from its current level of 6%, as shown in the chart above. This increase could bring it closer to the 8% figure.

In such a scenario, Bitcoin’s performance is likely to move in the opposite direction, indicating a possible price decline soon.

On January 25, Bennett suggested that Bitcoin could fall another 20% from its current levels, which would put it around $30,000. If this scenario plays out, it will be important for Bitcoin bulls to defend the $30,000 level to maintain the current bullish structure.

A drop below $29,000 would give bears a strong position, with only three major support lines remaining at $28,400, $25,900, and $24,000 before a possible retest of the $20,000 mark.

The performance of these support levels and Bitcoin’s ability to withstand increasing selling pressure will be key factors to monitor. Future market sentiment will also play an important role in determining Bitcoin’s price trajectory.

Bitcoin witnesses stellar accumulation trend

Despite the possibility of further price declines, renowned crypto analyst Ali Martinez has highlighted a notable trend in BTC’s recent accumulation series by investors.

According to analysis by Ali Martínez, Bitcoin is experiencing a significant accumulation streak, rivaling some of the most notable periods seen in the past few years.

The Accumulation Trend Score, a metric that measures the buying activity of large institutions, has remained consistently high over the past four months, hovering near 1.

Bitcoin
BTC’s Accumulation Trend Score is in an upward trend. Source: Ali Martinez on X

This shows that influential market participants are actively accumulating Bitcoin, indicating their confidence in the long-term potential of the cryptocurrency.

Martinez’s comments further indicate that Bitcoin’s price range around $42,560 has emerged as a highly significant interest zone.

Within this range, an impressive total of 912,626 BTC has been transacted. This is expected to be an important support level, which will potentially prevent further downside and lead to increased buying interest.

These trends collectively contribute to a positive market outlook, suggesting that despite potential price declines, Bitcoin remains an attractive asset for long-term investment.

Bitcoin
The daily chart shows BTC’s sideways price action between $42,900 and $43,000 over the last 24 hours. Source: BTCUSDT on tradingview.com

Featured image from Shutterstock, chart from tradingview.com

Disclaimer: The article is provided for educational purposes only. This does not represent NewsBTC’s opinion regarding buying, selling or holding any investment and investing inherently involves risk. You are advised to do your research before taking any investment decision. Use the information provided on this website entirely at your own risk.

source: www.newsbtc.com

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