Bitcoin (BTC) Set For $4,500 With Tether (USDT) Reserve Doubts
Bitcoin prices stable and bullish
Suspicion around Tether reserves will likely benefit Bitcoin
Participation levels low but could increase as demand picks up
Tether is making headlines thanks to their latest update touching on their reserves. While Bitcoin prices are unresponsive, it is likely that BTC will react as investors get edgy liquidating their USDT.
Bitcoin Price Analysis
By rolling a service with the express purpose of sheltering crypto traders during times of uncertainty, investors as well as traders expect better from Tether. On many occasions, the state of its liquidity has been questioned because it states that it is a stable coin pegged to fiat. However, what is worrisome is the latest beguiling update where the firm, while acting as a crypto haven, appears to be diversifying its reserves and acting like a trusted third party or a bank.
In reality, the stable coin operates in a fragile ecosystem and drawing its value as an IOU or a debt. The assurance is just because every USDT holder can redeem each currency for a dollar or Euro. Questions are now directed at Tether’s ability as an issuing firm to redeem every coin in circulation for fiat. The situation has been made worse given the firm’s association with banks with dubious and patch track records, the lack of bank audit and their association with BitFinex subpoenaed by the DoJ that they USDT to fraudulently drive crypto asset up during the last bull leg of late 2017.
Whenever there are concerns about Tether’s operation and hard questions asked about USDT pegging, Bitcoin tends to benefit. Back in Oct 15 2018, prices spiked when it emerged that Tether had bank related troubles.
At the time of press, Bitcoin (BTC) is dangling and ready to slide. It is immune to buyer’s stimulation, and even with optimism around the future, liquidation is on. We are yet to record sharp drops that reflect losses of Feb 24 neither have seen spikes confirming bulls of Feb 18 and Mar 5.
However, what is visible is a consolidation inside Mar 5 high low as prices trend above $3,500. From an effort versus results point of view, buyers have the upper hand.
Even with this calmness, every dip is a buying opportunity for risk-off traders aiming at $4,500. On the other hand, liquidation below $3,500 cancels this projection as bears aim at $3,000 and $1,800.
Our analysis anchors on Mar 5 double bar bull reversal pattern. Complete with average volumes—7.6k– but holding recent high lows, any sharp gain or loss driving prices above $4,000 or $3,700 with high trade volumes above 10k of Mar 5 or 36k of Feb 24 confirms gains of Feb 18 or sell off of mid-Nov 2018.
The post Bitcoin (BTC) Set For $4,500 With Tether (USDT) Reserve Doubts appeared first on NewsBTC.