Bitcoin updated its annual highs on Wednesday, rising to $13,000 for the first time in 15 months. This was preceded by the announcement of the PayPal payment company about the imminent addition of cryptographic support. However, at least one analyst believes that these events should not be linked to each other.
"I do not believe that the last BTC upturn occurred because of the news about PayPal, - writes the analyst under the nickname CryptoHamster. - As for me, it is more like "Pump C" in October 2019.
The analyst refers to a 40 percent Bitcoin rally that took place shortly after Chinese President Xi Jinping announced the need to develop Blockchain technology. This movement was subsequently completely eliminated by the increased activity of the sellers.
CryptoHamster notes that in both cases, bitcoin has been growing as the supply of Tether stelecoin has increased. In other words, by that time capitals were already directed to bitcoin, and no additional inflows from outside were recorded afterwards.
Having imposed USDT capitalization on bitcoin movements, the analyst found a correlation between them. The chart below shows that the exchange rate of bitcoin repeatedly coincided with the increase in USDT capitalization. When the inflow of funds into the USDT stopped, the bitcoin price was declining.
"New Tether -> Bitcoin goes up; capitalization of Tether goes down -> Bitcoin also goes down; Tether looks like a leading factor," he wrote.
Another analyst notes that further movements have not yet been determined: "Until the bitcoin keeps above $13,000, I wouldn't bet on testing historical highs. If there are conditions for short positions in the coming days, I will stick to the short swing scenario. At worst, I expect it to fall to $8,000.
Another reminder that the Chicago Mercantile Exchange (CME) futures chart has gaps left open around $11,000. Historically, such gaps have tended to fill up, suggesting a possible market direction.
"Over time, they will be closed, which is why I think forming long-term positions around $13,000 is a terrible idea," he writes.
Bitcoin is trading around $13,000 at the time of publication, having reached this level for the second time in the last 24 hours.