Latest Bitcoin Drop Accommodates Filling Another CME Deficit, Forecasting Next Aim at $116,000 and Beyond
In a recent development, Bitcoin has managed to fill out the last remaining CME Gap, moving from the $113,000 price range to the $116,000 price range [1]. This significant event, combined with other bullish indicators, suggests a potential continuation of the bull run or the start of a strong bull phase for the world's largest cryptocurrency.
Analysts, such as Kevin (@Kev_Capital_TA), have pointed out that the USDT Dominance chart shows a "rising channel slash bear flag" pattern targeting the critical long-term support level of 3.7% [1]. Historically, when USDT dominance falls sharply, Bitcoin and altcoins tend to experience upward momentum. A breakdown at this level indicates growing risk appetite and capital flow into crypto risk assets like BTC.
Moreover, TradingView analysts suggest that if a key USDT dominance support level near 4.12% breaks, Bitcoin could reach new all-time highs again [3]. This further reinforces the idea that declining stablecoin dominance often precedes strong price rallies in BTC.
The BTC price dynamics also support a positive outlook. Despite facing resistance near current highs, bullish momentum, such as a rising RSI and upcoming bullish events, may push BTC prices towards $135,000 or higher [2]. The rise in BTC dominance, a counterpart metric to USDT dominance, alongside a filled CME gap, further confirms ongoing bullish market sentiment.
Currently, Bitcoin is trading within the range of $114,000 to $115,000 according to CoinMarketCap analytics [4]. However, recent price movements indicate an attempt to reclaim levels above this range. The latest dip in Bitcoin's price, which was partly caused by Galaxy Digital selling 80,000 BTC, allowed Bitcoin to fill the $114,000 - $15,000 CME gap [4].
The analyst's post depicting USDT Dominance chart signals suggests that Bitcoin is trying to exit the current price region and is on its way to reclaiming the $116,000 price range and potentially moving upwards [1][2][3]. Some analysts, however, believe that more dips may be ahead for Bitcoin based on USDT Dominance chart signals.
It's important to note that this dip affected all financial markets, not just Bitcoin. For instance, Jerome Powell's refusal to announce a rate cut in August led to another dip in the price of Bitcoin [4].
In summary, the USDT dominance chart after filling a CME gap signals decreasing stablecoin dominance, which is a bullish indicator for Bitcoin's price movement and may predict continued upward momentum or the start of a strong bull phase given historical correlations known in mid-2025 technical analysis [1][2][3].
- The USDT dominance chart, after filling a CME gap, suggests a potential decrease in stablecoin dominance, which historically has been a bullish indicator for the price movement of cryptocurrency like Bitcoin.
- Together with other bullish indicators such as a rising RSI and a filled CME gap, the decrease in stablecoin dominance, as signaled by the USDT dominance chart, might predict the continuation of the bull run or the start of a strong bull phase for the world's largest cryptocurrency, crypto, in the domain of finance, backed by mid-2025 technical analysis.
