Market Cap USDT Dominance, %
Long
Updated

USDT Dominance% Breakout: Crypto Correction Not Over?

2 291
Today, I’m going to analyze Market Cap USDT Dominance%(USDT.D) on the weekly timeframe for you. The reason I want to analyze USDT.D% is that the crypto market conditions have become a bit complex lately, and many factors are influencing it. Therefore, it’s better to take a look at the weekly chart of USDT.D%.

Currently, it seems that USDT.D% is in the vicinity of a Heavy Resistance zone(6.78%-5.25%), but at the same time, there’s also a Support zone(6.24%-5.57%) that could potentially lead to an increase in USDT.D%.

From a classical technical analysis perspective, we can clearly see on the weekly chart that the upper lines of the symmetrical triangle have been broken, and it seems that USDT.D% is currently pulling back to those upper lines. As long as it doesn’t move below those lines again, we can still expect that the market correction is ongoing and hasn’t ended yet. This is a sign that helps us gauge whether the crypto market correction is complete or still ongoing.

From an Elliott Wave perspective, with the breakout of the symmetrical triangle, it seems that USDT.D% might be starting a new impulsive wave.

Since we’re not seeing Regular Divergence(RD-) at the highs, it indicates that the recent upward movement in the crypto market, especially Bitcoin’s(BTCUSDT) recent gains, is still part of the correction phase.

In conclusion, based on the above analysis, I expect USDT.D% to rise again. If USDT.D% breaks through the resistance lines, we can hope that it will also break through the Heavy Resistance zone(6.78%-5.25%), and that would be a negative sign for the crypto market, potentially leading to deeper corrections in the coming weeks.

So, what do you think? Do you believe the crypto market correction is over, or do you think it will continue? That’s a nice question to leave our analysis with.

Stop Loss(SL): 5.49%

💡 Please respect each other's opinions and express agreement or disagreement politely.

📌Market Cap USDT Dominance% Analyze (USDT.D%), Weekly time frame.

🛑 Always set a Stop Loss(SL) for every position you open.

✅ This is just my idea; I’d love to see your thoughts too!

🔥 If you find it helpful, please BOOST this post and share it with your friends.
Trade active
Trade was activated
Note
snapshot

Let’s take a look at the USDT.D% chart on the 4-hour timeframe.

On the weekly timeframe, USDT.D% has successfully broken above the upper lines of symmetrical triangle pattern.

At the moment, it appears that USDT.D% is completing a pullback to the upper lines of this symmetrical triangle, supported by the structure of a falling wedge pattern.

We can also observe a Positive Regular Divergence(RD+) forming across the consecutive lows.

I expect USDT.D% to begin rising again, and this potential rise could lead to another decline in Bitcoin.
Note
snapshot

First Target Done

As expected, USDT.D% started to rise again, and we should wait for the upper line of the falling wedge pattern to break. Further increase of this indicator could lead to further decline of the cryptocurrency marke,t and especially Bitcoin.
Trade closed: target reached
snapshot

Full Target Done

As I always remind you, make sure to keep USDT.D% (USDT Dominance%) on your charts when analyzing the crypto market. Especially when token charts become unclear or misleading, USDT.D% can provide a much clearer view of the market’s true direction.

USDT.D% moved exactly according to the analysis, and its rise led to a broad crypto market drop —with BTC taking significant selling pressure.

The market always gives signals before major moves. Sometimes those signals don’t appear on a token chart, but on key indicators like USDT Dominance.
Note
snapshot

Time Frame: 4-hour time frame

USDT.D% is a crucial index for analyzing the cryptocurrency market, as an increase in USDT.D% typically leads to a decrease in crypto market values.

Currently, USDT.D% is moving near the support zone(5.96%-5.68%) and close to the lower line of its descending channel.

From an Elliott Wave perspective, it appears that USDT.D% has completed its main wave C and is now moving into a corrective phase with a zigzag pattern, where the A wave is forming as a leading diagonal.

I anticipate that USDT.D%, given its current position, will rise at least toward the upper line of the descending channel, and this increase could lead to a decline in crypto prices, particularly in Bitcoin. If the upper line of the descending channel is broken, we can expect USDT.D% to rise further toward the resistance zone(6.21%-6.10%).

Considering the likely increase in tensions in the Middle East in the coming days, along with the military movements by the U.S., we can expect this bullish scenario for USDT.D% to come to fruition.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.