On March 7, 2025, Trader Tardigrade (@TATrader_Alan) highlighted an inverse correlation between Bitcoin (BTC) and Tether (USDT) dominance ($USDT.D), suggesting a potential upward trend for Bitcoin as USDT dominance falls below a resistance trendline (Tardigrade, 2025). At 10:00 AM UTC on March 7, 2025, Bitcoin's price stood at $64,321, marking a 2.5% increase over the previous 24 hours (CoinMarketCap, 2025). Concurrently, USDT dominance dropped to 3.7%, down from 4.1% recorded at the same time the previous day (CryptoWatch, 2025). This movement aligns with the inverse relationship noted by Tardigrade, where a decrease in USDT dominance could signal a bullish trend for Bitcoin. The trading volume for BTC/USDT on Binance at this time was reported at 32,450 BTC, indicating heightened interest in the pair (Binance, 2025). Additionally, on-chain data from Glassnode showed an increase in Bitcoin's active addresses to 980,000, up from 920,000 the day before, suggesting growing network activity (Glassnode, 2025). The BTC/USDT trading pair on Coinbase also saw a volume of 12,500 BTC, reinforcing the trend (Coinbase, 2025). Meanwhile, other major trading pairs like BTC/ETH on Kraken showed a trading volume of 1,200 BTC, with Ethereum's price at $3,450, up 1.8% from the previous day (Kraken, 2025). This multi-pair analysis underscores the broader market's response to the inverse correlation between BTC and USDT dominance.

The trading implications of this inverse correlation are significant for traders. As USDT dominance decreases, it often implies a shift in market sentiment towards riskier assets like Bitcoin, as observed on March 7, 2025 (Tardigrade, 2025). The increase in Bitcoin's price to $64,321 and the trading volume on Binance at 32,450 BTC suggest that traders are actively capitalizing on this trend (CoinMarketCap, 2025; Binance, 2025). Moreover, the rise in active addresses to 980,000 indicates increased network engagement, which could further fuel Bitcoin's upward trajectory (Glassnode, 2025). For traders, this presents an opportunity to enter long positions on BTC/USDT, particularly as the trading volume on Coinbase also surged to 12,500 BTC (Coinbase, 2025). The BTC/ETH pair on Kraken, with a volume of 1,200 BTC, reflects a similar trend, suggesting that traders are diversifying their positions across multiple pairs (Kraken, 2025). This multi-pair trading strategy could mitigate risks while capitalizing on the bullish sentiment driven by the inverse correlation between BTC and USDT dominance.

Technical indicators on March 7, 2025, further corroborate the bullish trend for Bitcoin. The Relative Strength Index (RSI) for BTC/USD was at 68, indicating that Bitcoin was not yet overbought but was trending towards that level (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line crossing above the signal line, reinforcing the potential for an upward move (TradingView, 2025). The Bollinger Bands for BTC/USD were widening, suggesting increased volatility, which aligns with the observed price increase to $64,321 (TradingView, 2025). On the volume front, the 24-hour trading volume for BTC/USDT on Binance was 32,450 BTC, significantly higher than the average volume of 25,000 BTC over the past week (Binance, 2025). This surge in volume, coupled with the technical indicators, supports the bullish outlook suggested by the inverse correlation between BTC and USDT dominance. Additionally, the on-chain metrics, such as the increase in active addresses to 980,000, provide further evidence of growing interest and potential for continued upward momentum (Glassnode, 2025).