A closely followed crypto analyst says one key metric indicates Bitcoin (BTC<\/a>) may have a hard time breaking out anytime soon.<\/p>\n In a new thread, crypto trader Justin Bennett tells<\/a> his 115,800 followers on the social media platform X that the Tether dominance chart (USDT<\/a>.D) is flashing bearish for Bitcoin.<\/p>\n Many traders closely watch the USDT.D chart as it shows how much of the crypto market cap is comprised of the stablecoin USDT.<\/p>\n A bullish USDT.D chart is generally considered bearish for Bitcoin and other cryptocurrencies as it indicates traders are unloading their crypto holdings in favor of the stablecoin.<\/p>\n Says Bennett,<\/p>\n \u201cHere\u2019s the challenge for BTC bulls: Tether dominance has held above its previous range highs since February 5th, and it\u2019s now testing this area as new support. If USDT.D drops back within the range on the high timeframes, then we have a bullish crypto market. If it can\u2019t, expect sideways to lower for BTC, ETH, etc. It\u2019s not about forecasting; it\u2019s about reacting.\u201d<\/em><\/p>\n The trader says<\/a> he would turn bullish on Bitcoin only if USDT.D loses the 4.37% level as support.<\/p>\n \u201cTether dominance has suggested a cautious approach to crypto since early February. I\u2019ve said it for weeks. I\u2019m sure we\u2019ll encounter short squeezes along the way, but there\u2019s still no reason to be bullish on BTC, ETH, etc. If 4.37% fails, that changes.\u201d<\/em><\/p>\n USDT.D is at 4.47% at time of writing, indicating that the trader\u2019s support level is holding.<\/p>\n The trader also says<\/a> that Bitcoin may be setting the stage for a short squeeze.<\/p>\n A short squeeze happens when traders who borrow an asset at a certain price in hopes of selling it for lower to pocket the difference are forced to buy back the assets they borrowed as momentum moves against them, triggering further rallies.<\/p>\n \u201cDecent amount of buy-side liquidity between current levels and $100,000. Then we see if gramps can hobble to $103,000. It\u2019s not pretty, but with stocks rallying on hopes and dreams, there\u2019s a decent chance this sideways chop ends with Bitcoin shorts getting squeezed. All eyes on $103,000.\u201d<\/em><\/p>\n Bitcoin is trading for $97,271 at time of writing, flat on the day.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>   Generated Image: Midjourney<\/span><\/em><\/p>\n<\/p><\/div>\n
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<\/center><\/p>\nDisclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.<\/h6>\n<\/div>\n
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