Why the market bottom is probably very close - USDT.D
Observe the 10D (!) chart above.
1) Price is above the upper bollinger band. Candles don't often print outside bollinger bands and, if they do, the price quickly corrects inside the bands. In this case, the index should drop.
2) RSI. Look at the levels and what happened each time it hit them. Remember, this is a 10D chart (high timeframe) which means indicators print more powerful signals.
However, keep in mind: A move outside the bands calls for a continuation of the trend, not an end to it. Often, the first push of a major move will carry prices outside the bands. (such is the case with the last move)
On the other hand, a sharp move outside the bands followed by an immediate retracement of that move is a sign of exhaustion. Now, the long wicks above the last few candles printed signify that immediate retracement, in a way showing trend exhaustion.
All things considered, I find it highly unlikely USDT dominance keeps rising. Inflation is still very high (no matter those clowns at the White House or the EU parliament saying they have it under control with a 50bp raise, like that is going to undo years of money printing) and crypto is growing (not necessarily good because the market gets more emotional and irrational when the average guy/girl plays a big part, but my point is that liquidity has and will keep rising). Probability wise (looking left at the chart), it is about time USDT.D drops and crypto starts rallying again.
1) Price is above the upper bollinger band. Candles don't often print outside bollinger bands and, if they do, the price quickly corrects inside the bands. In this case, the index should drop.
2) RSI. Look at the levels and what happened each time it hit them. Remember, this is a 10D chart (high timeframe) which means indicators print more powerful signals.
However, keep in mind: A move outside the bands calls for a continuation of the trend, not an end to it. Often, the first push of a major move will carry prices outside the bands. (such is the case with the last move)
On the other hand, a sharp move outside the bands followed by an immediate retracement of that move is a sign of exhaustion. Now, the long wicks above the last few candles printed signify that immediate retracement, in a way showing trend exhaustion.
All things considered, I find it highly unlikely USDT dominance keeps rising. Inflation is still very high (no matter those clowns at the White House or the EU parliament saying they have it under control with a 50bp raise, like that is going to undo years of money printing) and crypto is growing (not necessarily good because the market gets more emotional and irrational when the average guy/girl plays a big part, but my point is that liquidity has and will keep rising). Probability wise (looking left at the chart), it is about time USDT.D drops and crypto starts rallying again.
Comment:
Comment: Sorry for the RSI tool not showing up properly, play with the scale on the right to see it correctly. The preview looked fine on my monitor (different resolutions/aspect ratios etc.)
Comment:
RSI on the 10D USDT.D chart is now at 77.91 (highest its ever been on that timeframe)