Recently, Bitcoin
$95,006
has gained momentum, surpassing the $95,000 mark. Cryptocurrency analyst Jason Pizzino, who has a following of 350,000 on YouTube, shared optimistic insights about the market. He noted that the technical signals appear to have reversed, indicating that Bitcoin may have entered a new upward trend by breaking its March peak.
Technical Signals Favor Bulls
According to Pizzino, surpassing Bitcoin’s peak in March has rendered the negative signals that triggered sharp declines in December, January, and March invalid. He argues that this breakthrough signifies the end of the macro downtrend.
“Bitcoin has broken its highest point from March. This negates the peak signals from December and January. Similar signals had also occurred in March 2024, causing declines of over 30%,” Pizzino stated, highlighting that similar patterns are now working in an upward direction.
The cancellation of these signals has instilled renewed confidence among investors, leading to a positive shift in market sentiment. This change in technical analysis increases the likelihood of Bitcoin achieving a stronger position beyond its short-term targets.
USD Weakens, BTC Shines
Another key point raised by Pizzino is the notable weakening of the US Dollar Index (DXY). The dollar recently closed at its lowest level in 37 months, a dynamic that historically has contributed to Bitcoin’s value appreciation.
“The US dollar has reached its lowest point on a weekly chart in 37 months. The month-end is approaching. Such declines typically trigger sharp upward movements in BTC,” the analyst explained, suggesting that the dollar’s weakness could create new opportunities for Bitcoin.
Historically, such declines in DXY have been followed by price surges in Bitcoin. Investors are reassessing their positions in light of the possibility of this scenario repeating itself.
Decline in USDT Dominance Captivates Attention
Another factor working in favor of Bitcoin is the decline in USDT (Tether) market dominance. A drop in USDT dominance is seen as a significant indicator that investors are shifting from stablecoins to riskier assets.
Pizzino noted, “USDT dominance has broken through critical levels we monitor. However, it still remains above the 50% mark,” indicating that this change is not yet fully established but should be closely watched.
The decrease in USDT dominance may suggest that liquidity is shifting towards Bitcoin and other major cryptocurrencies, potentially signaling a new wave of increases in the markets.
At the time of writing, Bitcoin is trading at $95,252, having recorded a 2.5% increase in the last 24 hours. Technical signals, the dollar’s depreciation, and the decline in USDT dominance are setting the stage for greater volatility in the short term.