A prominent cryptocurrency analyst is raising concerns about the current state of the crypto market, suggesting that there may be further corrections ahead based on a crucial metric. Justin Bennett, a well-known crypto trader with a significant following on social media, recently shared his insights on the Tether dominance chart (USDT.D) and its implications for Bitcoin (BTC) and other digital assets.
The USDT.D chart is closely monitored by traders as it reflects the proportion of the crypto market cap represented by the stablecoin Tether (USDT). A rising USDT.D chart is typically seen as a bearish signal for Bitcoin and other cryptocurrencies, indicating that traders are moving away from volatile assets towards the stability of the stablecoin.
Bennett highlighted the significance of the current levels on the USDT.D chart, noting that it has recently hit its highest daily, three-day, and five-day closes since early November. The chart has found support around the 4.4% level, leading Bennett to urge caution and vigilance in monitoring the situation. He emphasized that a drop in Tether dominance back below the 4.37% level could signal a short-term bullish trend for Bitcoin.
Moving on to Ethereum (ETH), Bennett predicted a period of sideways movement for the cryptocurrency after it managed to reclaim the $2,600 support level. Despite a bounce on Monday, ETH’s price action indicates a potential consolidation phase, with Bennett advising that bulls should remain cautious.
At the time of writing, ETH is trading at $2,705, showing a 1.9% decline in the last 24 hours. Bennett also shared his outlook on Bitcoin, suggesting that it may revisit a range low of $91,787. While Bitcoin saw a bounce from range lows earlier in the week, Tuesday’s session closed below key levels, raising concerns about further downside potential.
Bitcoin is currently trading at $96,713, down 1.6% in the last 24 hours. As the market continues to navigate these volatile conditions, traders are advised to stay informed and exercise caution in their trading decisions.
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