A closely followed crypto trader, Bitcoin (BTC) and other assets in the cryptocurrency markets are poised for a jump ahead of the latest consumer price index (CPI) update.
The trader, known by the alias Cantering Clark, revealed from his 128,200-follower Twitter account that he closely follows the USDT dominance (USDT.D) chart, which tracks the market share of stablecoin Tether (USDT) relative to the rest of the crypto markets.
Tether (USDT) increased dominance means market participants are selling their holdings to protect themselves. A corrective USDT.D chart shows that traders are using their Tether to buy other digital assets.
Cantering Clark believes the USDT.D chart is poised for a correction as it hovers close to all-time highs (ATH).
“I think we’re going to see a jump very soon. Not only in the short term, but gradually in this region the fear of buying more spots and buying lower will increase. I think these purchases can be rewarding outside of just a weekly time frame.”
According to the trader, the CPI update scheduled for May 11 could act as a catalyst for a cryptocurrency market relief rally.
“If the CPI falls a little more next week, the market will at least give a short-term response, even if it doesn’t mean anything for inflation.”
Taking a close look at Bitcoin Cantering Clarkstated that a move below $20,000 is possible, but believes the chances of a sharp correction in the leading cryptocurrency are slim.
“It is still possible for the Bitcoin price to drop below the $20,000 level and fall below that as well. So is this probability high? I think absolutely not. I don’t think we will go below $24,000. Purchases under $30,000 can yield profits.”
Cantering Clark also highlighted that Bitcoin is currently trading in the support area of a multi-month range.
“We were in range for four months. Here comes a trend to the lower part of the wider range. It’s good to keep things simple. You are looking for a trap, but you do not see a trap yet.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.