Bitcoin may be nearing a significant price bottom, according to technical indicators and historical patterns. Analysts note Tether’s USDT dominance has revisited a key resistance zone that preceded previous BTC cycle lows. Concurrently, Bitcoin’s weekly chart shows a combination of oversold conditions and support at a major moving average, a pattern historically linked to substantial price rebounds.
Technical analysis suggests Bitcoin could be forming a market bottom as Tether’s USDT dominance retests a historically significant resistance level. This zone between 8.50% and 9.00% previously aligned with Bitcoin’s bear market low near $15,700 in November 2022.
When USDT’s market share rises, it typically signals a flight to safety into stablecoins. A subsequent rotation back into cryptocurrencies like Bitcoin usually coincides with USDT dominance falling.
Bitcoin’s weekly chart also shows a familiar bullish setup. Its weekly Relative Strength Index recently slipped below 30, indicating oversold conditions, while the price found support at the 200-week simple moving average.
This specific combination has preceded major Bitcoin rebounds in past cycles. Those included a 1,115% rally in 2020-2021 and an approximately 8,500% surge in 2015-2017.
Current on-chain activity reflects a “buy-the-dip” sentiment among large players. Whales accumulated roughly 40,000 BTC during the recent price drop below $60,000, while Binance added about $300 million worth of Bitcoin to its reserve fund.
Analysts at Bernstein described the ongoing pullback as the “weakest” in Bitcoin’s history in a recent client note. They reiterated a $150,000 price target for Bitcoin by the end of 2025 stated in their analysis.
