The post Bitcoin Faces Decline Risks with Potential Target Near $81,500 as Tether Dominance Rises appeared on BitcoinEthereumNews.com.

Bitcoin’s recent struggle to breach $102,734 has raised concerns among investors, potentially leading to a downturn toward $81,500. The cryptocurrency, which recently peaked at $108,365, has declined by 15% within a week, prompting analysts to reassess the market’s trajectory as Tether dominance rises. “We’ll probably see a sharp spike in price — that’s the pump — which might fool people into thinking the market is about to take off,” remarked a contributor to TradingView. Bitcoin faces bearish pressures with a decline toward $81,500 amid rising Tether dominance, as analysts warn of a potential market trap in early January. Pivotal Resistance and the Risk of a Downtrend Bitcoin’s inability to overcome the significant resistance level around $102,734 has instigated a bearish sentiment in the crypto market. As the leading cryptocurrency prints lower highs, traders are concerned about the potential for further declines. The recent decline signals a broader caution as market dynamics shift with increasing Tether market dominance, which traditionally has inversely correlated with Bitcoin’s performance. Impact of Tether’s Market Dominance on Bitcoin Analysts have noted that the correlation between Tether’s market share and Bitcoin’s price may indicate an impending downturn. A particularly insightful observation comes from The ForexX Mindset, who highlights a recent rebound in the USDT Dominance Index, suggesting a possible “flight to safety” among traders. As Tether’s dominance rises, capital is often shifted away from Bitcoin, leading to increased volatility and potential price drops for BTC. The ForexX Mindset cautioned, “This is a trap. Right after that spike, a huge dump is coming, and anyone who jumps in too soon could get wiped out.” Bearish Signals and Fibonacci Retracement Levels As Bitcoin hovers around the $96,000 mark, technical indicators suggest that the next support level is critical. The cryptocurrency recently tested the 1.618 Fibonacci extension level but faced…

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Filed under: News - @ December 27, 2024 12:25 pm