 ▲ Tether (USDT) and Bitcoin (BTC) / AI-generated image |
Analysis suggests that Bitcoin (BTC) has ended a historic period of extreme downturn and is preparing for a strong rebound, while Tether’s market dominance has reached a critical level that aligns with past market bottoms.
According to a February 9 report by cryptocurrency-focused outlet Cointelegraph, Bitcoin is likely to form a bottom in the coming weeks. This outlook is based on observations from the Tether Dominance chart, which tracks the market share of USDT, Tether’s stablecoin. As of February, Tether dominance has reached the 8.5%–9.0% range, retesting a resistance zone that has historically coincided with Bitcoin bear-market bottoms. Generally, rising Tether dominance indicates that investors are shifting from risk assets to stablecoins; when this metric peaks and begins to decline, Bitcoin has historically posted strong rallies.
Technical indicators also support a bullish scenario. On the weekly chart, Bitcoin’s Relative Strength Index (RSI) has fallen below the oversold threshold of 30, while simultaneously rebounding after testing the 200-week simple moving average (SMA). This combination of signals represents a classic macro bottom pattern seen just before the 1,115% surge in 2020 and the 8,500% rally in 2015. A team led by Bernstein analyst Gautam Chhugani described the current price correction as the weakest bear market on record and reiterated a $150,000 price target by the end of 2026.
Clear signs of bottom-buying are also evident in actual capital flows. Large investors, or whales, accumulated roughly 40,000 BTC as prices briefly plunged below $60,000, absorbing market supply. Major exchange Binance also acquired approximately $300 million worth of Bitcoin to bolster its Secure Asset Fund for Users (SAFU) during the downturn. In addition, Strategy Inc. officially announced a recent purchase of $90 million worth of Bitcoin, underscoring strong institutional commitment to holding the asset.
Bitcoin is expected to secure strong rebound momentum as long as Tether dominance does not exceed 9.0%. In November 2022, when Tether’s market share peaked in a similar range, Bitcoin bottomed near $15,700 before nearly doubling to above $31,000. Experts anticipate that, amid continued whale accumulation and additional corporate buying, a decisive downturn in Tether dominance will signal the onset of a full-fledged bull market.
*Disclaimer: This article is for investment reference purposes only, and no responsibility is taken for investment losses based on it. The content should be interpreted solely for informational purposes.*