The support and resistance lines in the USDT.D graph gives us highly accurate reversal levels for BTC. As the stablecoin dominance is measured as a percentage, we are able to get a better grip on the investor Fear & Greed regardless of the marketcap.
Some key observations:
3.24 level acts as the divide between a bull market and a bear market. Getting below this value is bullish, getting above is bearish.
Since 28K, USD.T has broken below key resistance lines and now is below this bull/bear market critical level.
BTC's fall to 45.7 coincided with USD.T confirming this critical level, as the graphs below indicate.
If USD.T dominance falls from its current location, then we have a really good bullish momentum in our hands.
Would you classify this as a descending triangle? If so what are the key levels of support you're anticipating, as it's crossed that 3.24 level you mentioned. And would you say we could be back in a bull market as its under that level?
SBLineker
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@galston14, great question. 3.24 level for me is a critical one, but there is no concrete evidence to confidently say this is the divide between a bear and a bull market. Keep in mind that we don't have this dominance value for the 2013 or 2017 peaks. What is known, however, is that this level has served as a significant support/resistance zone so we can presume such importance.
Descending triangle is a valid classification for this price action. We are now testing a key level support in fact, (this is the aqua trend line in the image below).
Are we back in a bull market? Who knows. It is just a probabilities game and in my opinion break of this final key level support significantly increases the odds of money influx and thus bullish price action.