Bitcoin Eyes $87K as CPI Data and USDT Dominance Shape November Rally
Key Summary
Bitcoin is poised to break out to $87K as CPI data and USDT dominance shape the November narrative, with rising liquidity and smart money accumulation driving the bullish trend. A hot CPI report could lead to increased volatility and rate hikes, while a cool report could boost the chances for the Fed to pause. Meanwhile, USDT dominance faces 7% resistance, which could trigger a rotation into risk assets and provide Bitcoin with an opportunity to recover.
Key Developments
Bitcoin dominance has broken back above the 60% resistance level, suggesting that buying pressure could be building ahead of a volatility spike. According to Alphractal data, global liquidity has increased significantly in the last 30 days. China accounts for 39% of the global money supply, while the US holds 17%, bringing the total global money supply to $140 trillion.
USDT Dominance
USDT dominance is up more than 2.5% this month, reflecting Bitcoin’s retreat from $87k to $82k. However, this trend may be due to hit a critical inflection point. As the chart below illustrates, USDT.D is encountering resistance around 7%, which is the same level it failed to break during the mid-September rally.
Smart Money Accumulation
Smart money seems to be betting on another green November as an analyst picked up on five wallets buying 1,076 BTC worth $90.42 million ahead of CPI’s release.
Technical Analysis
Technically, November has been one of the strongest months for Bitcoin, averaging more than 40% ROI during its peak performance. A key metric shows that traders might be moving funds out of stablecoins, which could provide Bitcoin with an opportunity to recover.
Conclusion
Rising liquidity and smart money accumulation could fuel a November rally toward $87k, as USDT dominance faces 7% resistance and a rejection could boost Bitcoin. With the November window approaching, this could give Bitcoin the momentum it needs to retest the $87k level and establish a new bullish trend.