Categories: Bitcoin Latest News

Is Bitcoin Ready to Soar? Key Indicators Signal Potential $72K Target

Bitcoin is seeing an uptick following its recent reclaim above the $60,000 mark in the past day. Amid this price performance, renowned crypto analyst Mags on Elon Musk’s social media platform X shared his latest asset analysis.

According to Mags, Bitcoin could be poised for a major rally, driven by factors related to the USDT dominance (USDT.D) and the forming technical chart patterns.

Bitcoin On The Verge Of A $72,000 Rally?

Mags explained that the inverse correlation between USDT dominance and Bitcoin’s price is a key indicator to watch. USDT dominance refers to the market share of Tether (USDT) in the overall cryptocurrency market, and its movements can often signal shifts in Bitcoin’s price.

Mags pointed out that USDT.D recently broke down from a strong trendline support and is currently testing the point of breakdown, which could lead to forming a bear channel.

Meanwhile, Bitcoin forms a broadening wedge pattern, typically seen as a bullish continuation signal. If USDT.D continues to decline, Mags anticipates that Bitcoin could see a notable “leg up,” potentially pushing the price to $72,000 or higher.

#Bitcoin pump incoming ?

If you’ve been paying attention to USDT.D, you already know about the inverse correlation between USDT.D and BTC.

Looking at the chart, USDT.D broke down a strong trendline support and is currently testing the point of breakdown with a possible… pic.twitter.com/lqZ6SPCgaQ

— Mags (@thescalpingpro) August 22, 2024

Volatility on the Rise: A Catalyst for BTC’s Next Move?

In addition to the technical indicators, another factor contributing to the growing anticipation of a Bitcoin price surge is the recent increase in market volatility.

Bitcoin’s volatility has surpassed levels not seen in the past months and has continued to rise, which could be a potential catalyst for Bitcoin to see a significant break out towards the upside.

Crypto analyst Daan Crypto Trades highlighted this development in a recent X post, noting that after a period of low volatility, Bitcoin’s volatility levels are ramping back up, approaching the levels seen earlier this year during the asset’s all-time highs.

Daan Crypto Trades emphasized that this volatility increase is needed to end Bitcoin’s consolidation, potentially leading to a decisive price movement in one direction or the other.

#Bitcoin After a big slump in volatility levels, it’s now ramping back up and getting close to levels we saw earlier this year at the all time highs.

It’s what’s eventually needed to put an end to this massive consolidation in one way or another pic.twitter.com/CHoZXHk5K4

— Daan Crypto Trades (@DaanCrypto) August 21, 2024

Featured image created with DALL-E, Chart from TradingView

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