Re-Accumulation Phase: Will Declining USDT Dominance Launch BTC to $150,000?

Bitcoin Expands Its Consolidation Below $100,000

Bitcoin continues its consolidation below $100,000 since the beginning of February. This price stagnation is exacerbated by a weakening of bullish sentiment among investors and diminishing enthusiasm regarding crypto-positive influences from the new Trump administration in the U.S. Despite the slowdown in the rally, technical analysis continues to support a bullish long-term outlook for Bitcoin. The current stagnation appears to be a phase of re-accumulation for bullish investors—a pattern seen repeatedly before major upward movements in this cycle. Moreover, analyses indicate that the dominance of USDT will play a key role in triggering the next Bitcoin rally towards $150,000.

Re-accumulation Phase of Bitcoin and the Role of USDT Dominance

According to technical analyst TradingShot on the TradingView platform, Bitcoin is currently showing an interesting accumulation trend alongside USDT dominance. USDT dominance reflects the percentage of the total market capitalization of the crypto market held in USDT, thereby indicating whether traders prefer stablecoins over riskier crypto assets. High USDT dominance usually signals weak buying pressure in cryptocurrencies. Conversely, declining USDT dominance often indicates that traders are redirecting funds back into Bitcoin and other cryptocurrencies.

USDT Dominance and the Future Bitcoin Rally

Interestingly, USDT dominance has always coincided with preparatory phases for Bitcoin rallies in this cycle. Two notable periods of re-accumulation occurred following Bitcoin’s bottom in November 2022, both leading to significant price rallies. The first accumulation period spans January 2023 to March 2023, while the second is between November 2023 and February 2024. Both of these periods coincide with the 0.5 Fibonacci level of extension from the previous accumulation phase. Additionally, they share common characteristics, including a peak 1-day RSI structure in the USDT dominance chart and a pullback of the Dollar Index (DXY).

Currently, Bitcoin seems to reflect the same conditions again—USDT dominance and DXY are declining while the current re-accumulation phase unfolds, which has been ongoing since December 2024. If this pattern continues, it could indicate that Bitcoin is on the verge of its next major rally.

USDT Will Propel BTC to $150,000

If Bitcoin follows the same pattern observed in previous rallies during this cycle, and USDT dominance remains a key factor, the re-accumulation phase could conclude within the next one to two weeks, potentially leading to a new rally towards new historical highs. Regarding the price target, the analyst notes a potential target of $150,000 for the price of Bitcoin before the next major correction and subsequent accumulation. However, Bitcoin first needs to overcome key resistance levels, especially the psychological barrier of $100,000, which has been a significant hurdle in recent weeks. At the time of writing, Bitcoin is trading at $97,175, reflecting a 1.6% increase over the last 24 hours. A move to $150,000 would represent a 54% increase from the current price.