There are a whole lot of ways to predict Bitcoin’s price movement in the near term. One of such is the placement of Tether velocity’s 30-day moving average against Bitcoin’s price chart. Currently, the comparison between both shows that Bitcoin could face a significant correction very soon.
Tether’s 30-day Moving Average Velocity and Bitcoin’s Price Movement
Tether’s (USDT) 30-day moving average (MA) velocity is ascertained by dividing the stablecoin’s volume by its market capitalization. Since January 2019, each time Tether’s 30-day MA velocity surged, Bitcoin’s price followed suit a few weeks later. However, a decline in Tether’s volume is followed shortly by a dump in Bitcoin’s price.
On August 19, 2019, Modern Consensus placed the chart of a 30-day moving average of Tether velocity and that of Bitcoin side-by-side. Tether’s chart shows a decline in its volume, and as such, if the same pattern of Bitcoin declining alongside with it is maintained, the top cryptocurrency by market cap may face a crash in price in late August or September.
Tether’s Minting Could Influence Bitcoin’s Price
In the same vein, Vilecarlo The Tether Whisperer, a crypto enthusiast remarked on August 19, 2019, that the minting of Tether stopped in July’s end. At almost the same time (mid-July), Bitcoin’s price had begun to spike. Thus, the non-issuance of USDT in the market of recent is believed to trigger a downtrend in Bitcoin’s price shortly.
Coindesk Market, for instance, stated:
“There is a positive correlation between #USDT minting and #bitcoin’s price.”
On the other hand, Tether’s minting halt has mainly been attributed to the case between New York Attorney General (NYAG) and iFinex, the parent company of Bitfinex cryptocurrency exchange. The New York State district court on August 19, 2019, denied iFinex’s appeal to dismiss the case against it.
Per the court’s filing, NYAG will be able to proceed with its investigation and has demanded that iFinex presents documents at its request. iFinex also has until October 14, 2019, to hand over the documents required from them. The latter goes contrary to the court’s stay imposed on NYAG to prevent the law agency from demanding documents from iFinex.
Crypto Community Expects a Correction of Bitcoin’s Price
On the other hand, it seems the crypto community is expecting a correction to the $9,000 price level at this point. A closer look at crypto twitter reveals high sentiments that Bitcoin might break from its $10,000 price zone to be priced lower. Nonetheless, this is not full proof of what Bitcoin will do as time, and again, it has performed contrary to expectations and predictions.