Today I want to compare the current Tether capitalization with the previous bullish cycle, because it could be indicating what could happen in the next weeks or months with the price of Bitcoin
Dominance vs Capitalization
Tether Dominance Analysis
The fall in Tether's dominance is another important factor in the recovery of the Bitcoin price
As we see in the graph, since the recovery of the Bitcoin price, Tether's dominance has been falling in recent weeks
Investors have invested in Bitcoin, they bought Bitcoin with their usdt, after Bitcoin touched 26,000 dollars.
The dominance is found in a range with the possibility of continuing downward, allowing Bitcoin a greater price recovery.
Tether Capital Analysis
USDT's capitalization has remained near highs while Bitcoin has been in a correction, which means that money has not been withdrawn from the crypto market, in the last correction, but has been moved to tether waiting for better prices for Bitcoin or that uncertainty in macroeconomic variables decreases.
On the contrary, money has entered the Crypto market, which is why Tehter's capitalization has not decreased in recent weeks.
In summary
At this moment we find ourselves with the following conditions:
Tether dominance with chances of continuing in correction allowing Bitcoin to continue on a bullish momentum.
Tether capitalization at highs. Indicating Capital Entry to the Crypto Market
What happened in Previous Cycles when Tether reached Highs?
Previous Cycle - History can repeat itself.
Many months ago I did an analysis of tether indicating that we needed an accumulation and recovery period in the tether capitalization to see new highs. And that has already been accomplished.
New highs in the capitalization in Tether would indicate sustainable growth in the price of Bitcoin over time.
Comparing to 2018 -2019
As we see in the Tether graph, it begins with its correction in October 2018, the price of Bitcoin reaches 3,300 dollars.
Tether performs an accumulation period of 140 days, then its bullish cycle begins, where it reaches the previous maximum.
Four weeks it remains at the highs, until it breaks the resistance and continues its bullish cycle.
Meanwhile, Bitcoin goes from 3,300 dollars to 13,000 dollars.
As we see the growth in the capitalization of Tether allowed a sustainable growth in the price of Bitcoin and we could be repeating it.
Current cycle
We have already passed the period of correction and accumulation.
We have been in the recovery period of Tether's capitalization.
Meanwhile Biitcoin has gone from 15,500 at its lowest moment of its correction to the current 27,800 dollars.
In the last few weeks, the capitalization has broken the previous maximum, but it was not with a large bullish candle, but rather it has been threatened
We could find ourselves in a new period of accumulation by weeks as happened in 2019 when it reached the maximum capitalization.
Accumulate momentum to continue rising. This measure allows a sustainable growth of the price of Bitcoin