Bitcoin (BTC) consolidates, down 4.3 percent
$100 million worth of USDT minted, bullish for BTC
There is a correlation between the timing of USDT minting and BTC price expansion. Because of this, critics maintain that USDT is a tool for price manipulation. Meanwhile, with BTC shaky and $100 million more worth of USDT printed, prices stand to recover.
Bitcoin Price Analysis
The performance of BTC in the first half of the year is nothing but outstanding. Accompanying renewed interest (or fear) in future prices of cryptocurrency and Bitcoin is often a direct correlation with Tether (USDT).
USDT, minted by Tether Limited- a subsidiary of iFinex, is a safe haven. That is, during times of extreme price volatility, traders and Bitcoin holders tend to flock to the coin either in anticipation of price expansion.
Conversely, traders tend to liquidate the stablecoin when prices of digital assets are slumping. It is this close correlation between BTC prices and USDT in circulation that traders are keenly watching.
Not agreeing with allegations that the stablecoin is used to manipulate prices, Jesse Powell, the CEO of Kraken, explained that the expansion of USDT in recent days is because of the growth of USD supply. Backing Tether Limited, he said that the same trend is visible in Kraken. Whereas more USD flood the market, the value of BTC tends to expand.
Therefore, because of the latest minting of $100 million USDT by Tether Treasury, it is highly likely that BTC prices will correct higher like in previous cases. Add that to the safe haven status of the asset in light of increasing uncertainty and possible fund rate cuts, BTC bulls are at a vantage position.
Bitcoin BTC Price Movement
At the time of press, BTC is shaky and printing lower lows. Technically, BTC is consolidating against the USD in a bullish breakout trade. From previous BTC/USD trade plans, it is vital that bulls maintain prices above $9,500.
Failure could see BTC prices slide to $7,500 or even $5,500 in a massive correction as price action reprice the asset’s price driving it to equilibrium.
All the same, sentiment is bullish. Besides, with influential fundamental factors, buyers are at a pole position to snap back to trend. However, for better bullish signals, buyers will be in the driving seat once there is a close above $14,000 complete with high trading volumes exceeding those of June 26.
Mentioned above, June 26 leads this trade plan. Over-extended and closing above the upper Bollinger Bands, it has high participation of 82k. As such, any close above $14,000 or liquidation below $9,500 defining the short-to-medium trend of Bitcoin prices ought to be with high trading volumes preferably exceeding 82k. That will open doors for $18,000 or in the worst-case scenario, give bears a leeway for $5,500.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
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