Tether (USDT), the crypto often used as a digital dollar stand-in, has broken a critical long-term support level that has held for nearly six years, marking a potentially crucial moment for the currency and the wider crypto market.
A crypto analyst, Cryptorphic, reported that Tether’s drop below this crucial support comes as an “amazing development in price action,” indicating a possible point for market reversal. With the breaking of this trend line, which had been in place for approximately 2,184 days, the industry is now poised for significant changes, particularly as it aligns with the Bitcoin halving event anticipated later this year.
Such an event has historically been associated with significant price movements in the cryptocurrency space. The analyst expressed a keen sense of anticipation for the future, suggesting that if the downtrend continues, Bitcoin could reach the $100,000 mark by the end of the year. Despite expecting volatility, Cryptorphic appears confident that such a milestone is on the horizon. Cryptorphic stated in his X post:
TBH, this chart gives me chills. Imagine if this keeps dumping, you’ll see $100k in the EOY! Of course, the road will be bumpy, but sooner or later, it’s coming.
Following the halving, which is predicted to occur between June and September 2024, altcoins are expected to enter a period of heightened activity. Cryptorphic anticipates that this timeframe could see substantial rallies in the altcoin sector, which comprises a multitude of cryptocurrencies aside from Bitcoin.
However, Cryptorphic also laid out a specific condition under which the current analysis could be rendered inaccurate. This condition, known as an invalidation point, is if Tether’s dominance increases and sustains above 4.81% in a weekly candle closing. Such a move would suggest a shift in the market dynamics and contradict the bearish outlook.
