Bitcoin (BTC), the world’s most valuable cryptocurrency, has lost 15% of its value since reaching its all-time high (ATH) of $108,000. While this decline in Bitcoin has confused market participants, some analysts warn that the decline could deepen even further.$BTC
One analyst pointed to the increasing dominance of the largest stablecoin, Tether (USDT), in the market as the main reason for the decline. In particular, the USDT.D metric, which measures Tether’s market dominance, has been showing a recovery trend compared to recent months. One TradingView analyst noted that traders are moving their capital to USDT due to the high volatility and bearish expectations in the market.
TradingView analyst ForexX Mindset drew attention to the current picture in Bitcoin, predicting that this situation is bearish for BTC. The analyst said, “There will probably be a sharp increase in prices, which will make investors believe that the market will rise even more,” adding:
"But don't be fooled by this. This is a trap. The rise will be followed by a big fall and investors who fall into the trap will suffer losses."
Another analyst who predicted a short-term decline in Bitcoin stated that strange price movements could occur in the next few weeks before the "altcoin season." Addressing his 236,000 followers on the X (formerly Twitter) platform, Altcoin Sherpa pointed to the $90,000 and $87,000 levels on the BTC price chart and said:
“If BTC makes a move like this, I wouldn’t be surprised. There could be a few weird moves ahead of alt season and a period where the price is heading to the moon. But I’m still bullish.”
Bitcoin’s monthly price performance doesn’t look as bright as expected, but Altcoin Sherpa commented, “This is not the worst case. It’s currently in a neutral picture and could continue for a few more days.”
The analyst emphasized that Bitcoin could continue to trade between $99,000 and $92,000 before a new trend begins, and trading at this level would be risky.
"BTC's current level is not a good place to open long or short positions. Don't risk your account," he added.
After seeing a new all-time high, Bitcoin entered a downtrend on December 17. Having lost 3.73% of its value in the last week, BTC is trading at $94,482, down 2% in the last 24 hours.
Bitcoin's market value had risen to as high as $2.14 trillion last month, but in the past two weeks, BTC's market value has fallen to $1.8 trillion.