Will this “dry powder” and historical trends trigger a price boom? — TradingView News


As Bitcoin has slipped from its recent highs of around $74,000, some analysts are urging investors to remain calm and even view this as a buying opportunity. So far, Bitcoin prices continue to be under pressure and fell in the past trading week.

Are there any similarities to the Bitcoin bull run of 2020?

Although the downward momentum is slowing and there is no confirmation of the April 2 plunge, the failure of bulls to convincingly recover and push the coin above $71,000 remains a concern for some traders.

Nevertheless, an analyst represents

The trader said that in 2020, when Bitcoin prices fell and shook out weak hands, the recovery sparked a bull run that sent the coin powerfully above its previous all-time high of $20,000. The analyst appears to be calling the pre-breakout retracement a catapult that eventually fueled the “legendary” bull run that took Bitcoin as high as $70,000.

Historical BTC Performance |  Source: Analyst on X

Based on this comparison, the trader strongly believes that if you read the story, it might be the best time to “sell” at around spot levels. Still, buyers may consider doubling for now until there is clear trend definition and the current bear pattern is shaken off. Currently, BTC is facing strong rejections in the $71,700-$72,000 liquidation zone, which marks last week’s highs.

Pay attention to the “dry powder”

Aside from the technical candlestick formation, another trader believes that buyers are better at HODLing even when sellers are in control.

In a post on X, the analyst said Tether Holdings, the issuer of USDT, and Circle, the issuer of USDC, recently issued billions. On April 2, Tether issued 1 billion USDT on Tron, while Circle issued 250 million USDC on Solana.

This development, according to the analyst, means that there is “plenty of dry powder”. Stablecoins like USDT and USDC provide stability in crypto markets and provide crypto holders with a haven when prices fall.

Tether mints USDT on Tron |  Source: Analyst on X

However, they can also act as liquidity channels of the traditional market, offering interested users the opportunity to gain access to top coins or even participate in activities such as decentralized finance (DeFi).

In the past, prices often increased slightly when there were large stablecoin minters.