Tether Issuance Could Cause Bitcoin to Break out From Its Range

Share Article

Since the beginning of the week, there has been an uncommonly-high number of significant Tether (USDT) transfers to various cryptocurrency exchanges — headlined by a $40 million transfer to the Binance exchange. Previously, we have discussed that Bitcoin very often experiences upward price surges whenever new USDT is released into circulation.



With the overall bullish action throughout the entire cryptocurrency market last week, it seems that more whales want to get in on the action. However, this has not had the bullish implications that were expected. On the contrary, the Bitcoin price has been effectively trading in a range between $9100-$9700.

Cryptocurrency trader @josh_rager outlined the short-term chart along with several key resistance and support areas — suggesting that a breakout above resistance will lead to a move in the $10,000s. Additionally, he has used the volume profile indicator, which helps in determining the validity of support and resistance areas.



Let’s take a closer look at the Bitcoin price movement while trading inside this range and determine the direction of the ensuing move.

Bitcoin Price: Trading Range

The Bitcoin price has been trading inside a symmetrical triangle since reaching a high of $10,480 on October 26.

The closer we get to the end of the triangle, the trading range decreases — since the support and resistance lines converge. At the time of writing, the Bitcoin price was close to breaking down from this triangle.

Volume Profile Indicators

The volume profile indicators show that price levels in which most of the trading has occurred. As is visible above, the closest such level that can offer support is found at $8700.

Conversely, there is resistance until $9700 ù but it dissipates afterward. Based on this movement and indicator, it looks as if BTC will decrease towards $8700.


Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.


Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Trade with the Best Crypto Signals - guaranteed profits with over 70% accuracy

Join now

Want to learn how to trade? Get a beginners guide from BeInCrypto Academy!

Learn now