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New Tether Mining Raises Speculation that Bitcoin Prices May Be Pumped Above $60,000

Βitcoin price BTCUSD
Βitcoin - BTCUSD

Information from WhaleBot Alerts indicates that an unknown source has just minted 500,000,000 USDT tokens worth $497,832,540 into the Tether Treasury. This transaction was done on the Ethereum blockchain a short while ago. 

Such large-scale minting of Tether has traditionally been used to conduct large-scale purchases of major cryptocurrencies such as Bitcoin. With Bitcoin prices trading in a consolidation pattern for several weeks now, there are speculations that whales may be preparing to launch a large purchase of Bitcoin. This could impact Bitcoin prices, especially with Binance founder Changpeng Zhao indicating that Bitcoin is the only other coin he owns apart from his exchange’s Binance Coin. 

Bitcoin prices declined on the day, but are off intraday lows as some demand starts to creep into the BTC/USD pair. 

Technical Outlook for BTC/USD

Today’s decline and subsequent rejection at the triangle’s lower border preserves the consolidation phase of Bitcoin price action on the daily chart. With more than 75% of the distance from the base of the triangle to the apex already covered, we could see attempts at a breakout. 

A successful break of the triangle’s upper border also uncaps the resistance at 58363.33 and opens the door towards the 60,000 psychological resistance. Bulls would need to see this psychological barrier taken out, along with the all-time high at 61788.45 for Bitcoin prices to have a free passage towards 63,713.22 (141.4% Fibonacci extension from the 10 December 2020 to 8 January 2021 swing move). Above this level, the 161.8% Fibonacci extension at 68,729.79 could be a target to watch in the future.

On the flip side, a breakdown of the triangle opens the door for BTC/USD to target the support zone which has 54,926.24 as the ceiling and 53,319.16 as the floor. Below this level, 52.672.43 and the 50,006.75 psychological support levels form additional targets to the south. 

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BTC/USD Daily Chart

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