- Tether dominance remains well above 2021 lows, indicating Bitcoin may still have room to climb before the current cycle peaks.
- Each breakout above descending trendlines historically led to Bitcoin tops, reinforcing the likelihood of further price expansion.
- The inverse correlation between Tether dominance and Bitcoin price confirms the ongoing bullish cycle with more upside potential.
Bitcoin’s bullish cycle may still have room to run, according to a recent analysis of Tether dominance versus BTC price action. Colin Talks Crypto reveals a repeating pattern between falling Tether dominance and major Bitcoin price tops. The inverse relationship, mapped across a five-year period, offers insight into Bitcoin’s current position in its market cycle.
The data uses an inverted logarithmic scale to plot Tether dominance, revealing distinct correlations with Bitcoin peaks. Notably, major price tops in 2021—$64,000 in early Q1 and $69,000 in late Q4—coincided with steep declines in Tether dominance. These moments marked key turning points in market sentiment, signaling cycle tops.
Source: Collins
However, the period between 2022 and early 2023 saw the opposite. Tether dominance surged while Bitcoin prices retraced, forming a macro bottom in the curve. This reinforced the inverse correlation. Hence, the rising dominance of Tether often signals bearish sentiment, while its decline aligns with bullish momentum.
BTC Reversal Marked Mid-2023 Breakout
The pattern began to reverse in mid-2023 as Bitcoin broke past long-standing resistance. This shift marked the start of a renewed uptrend. White diagonal trendlines—once key resistance—were breached as BTC regained strength.
By 2024, Bitcoin reached a temporary high of $73,000, followed by a deeper breakout to an all-time high of $109,000. These moves happened while Tether’s dominance steadily declined. Consequently, the continued fall in Tether’s dominance signaled a bullish continuation.
Currently, in mid-2025, Bitcoin appears to be in another uptrend phase. A “2025 top?” annotation leaves the future open-ended. However, Tether’s dominance stands at 4.60%, still well above the 2021 lows. This suggests the current cycle has not yet peaked.
More Upside Potential Remains for Bitcoin
Moreover, the historical blueprint shows each breakout above descending trendlines led to a new market top. Besides, the latest breakout confirms the trend remains intact. Hence, analysts believe Bitcoin may not have reached its final high this cycle.
