The last time that tether acted as a stablecoin was during .. the tether sell off of 15 october. A lot of tether were rapidly sold to buy bitcoins . The price of tether felt and bitcoin was squeezed up.
Since there everything changed and tether was no more my good old tether. Just to remember binance undervalued this situation and in the last time had to rush to offer an alternative to the tether trade.
Now lets look how tether/USD and btc/usd acted since the the sell off of mid november.
1) the bitcoin first sell off was preceeded by a marked decrease of the price of tether. The bitcoin sell off was followed surprisingly by a further and sharp decrease of the price of tether.
---- predictive value of thether, with price convergence ----
2) as bitcoin consolidated the tether price increased, as a that warm up after a sell off.
----- a sort of "hidden divergence" -----
3) sell off with convergence between tether and bitcoin price
4) as the price of bitcoin began to slow down, the price of the tether began to increase.
5) The increase in price of tether was convergent with the price of bitcoin .
---- positive convergence ----
If we follow this logic of our new super indicator the next step would be a divergence between the price of bitcoin and the price of tether.
Now lets look at tether now.
Tether is consolidating on top of the parity and in an ascending projecting to the beginn of the second week of January in a clearly overvalued " overbought" zone.
Enjoy your trades!
1) price of tether slow down then slowly fall down while price of bitcoin increase and make a top
2) price of tether slow down, then fall suddendly with a sharp increase of bitcoin and top formation
3) price of thether slow down, fall slowly , bitcoin make a top and then they fall togheter