Tether’s latest activity was spotted by Lookonchain when it minted $2 billion in USDT two days earlier and another $2 billion nine hours thereafter. This $4 billion increase in stablecoin supply coincided with Bitcoin reaching a new high of $89,500. Some analysts believe this influx of USDT is contributing to Bitcoin’s rally.
As at press time, Bitcoin is trading at $88,544.29, reflecting a daily gain of 9.51%. The chart highlights a steady uptrend marked by successive higher highs and higher lows, indicating robust bullish momentum.
https://twitter.com/lookonchain/status/1856153677175894528
Bitcoin’s Trend and Key Levels
Bitcoin’s recent price action shows a clear upward trend. This growth comes from strong buyer interest. The $80,840 level became an important support base before this rally.
As Bitcoin rose, it found resistance around $88,500, which caused brief consolidation near this peak. This shows that the market wants to know if Bitcoin will hold above this resistance level.
A successful breakout above $88,500 could signal further upside potential, possibly driving BTC toward the psychological threshold of $90,000. Conversely, if Bitcoin fails to maintain momentum, it might revisit the $85,000 support level. This zone could act as a buffer before retesting the stronger $80,840 support.
Market Dynamics and Indicators
Lookonchain earlier data indicates that $2.54 billion has flowed from Tether to various exchanges since November 6. This substantial transfer suggests that the newly minted is entering the broader market, potentially fueling buying pressure and contributing to the rally.
Furthermore, the 24-hour trading volume has surged by 72.9%, underscoring significant market activity and bolstering the bullish outlook.
BTC/USD 4-hour price chart, Source: Trading view
The 4-hour Relative Strength Index (RSI) is reading 86.23, indicating that Bitcoin might be overbought in the short term. This heightened RSI suggests that while the current momentum is strong, a pullback could be on the horizon. The 4-hour Moving Average Convergence Divergence (MACD) also supports this, as it continues to trade above the signal line.
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