TETHER DOMINANCE - Bump and Run Update
I alerted here the start of a bump and run reversal on USDT dominance on January 12th. At the time, I said:
"Technically speaking, spot positions in alts are your best bet. Watch BTC dominance (hint - it's rising, too), however I think alts may be about to pop soon if BTC can stay above $18k."
BTC at the time was just starting to poke at $18,000 and it was only 3 days later, we were at $21,000. I guess a lot of people wanted to short everything on the push, but liquidations of short seller positions caused the market to continue higher and help market movers mark up the price of BTC. They thank you for that.
Though we will probably get a BTC pullback, which I will update on later today, I have serious doubts that we see a break of the November 2021 lows anytime soon. It's too easy to say we're going lower and to find a trade from here to take us there. It. Is. Too. Easy.
If it's an easy trade, it's probably wrong... even if the risk is good. Follow the trend.
Anyway - I believe USDT dominance will continue to decrease in the next several months even if we will have pullbacks along the way.
"Technically speaking, spot positions in alts are your best bet. Watch BTC dominance (hint - it's rising, too), however I think alts may be about to pop soon if BTC can stay above $18k."
BTC at the time was just starting to poke at $18,000 and it was only 3 days later, we were at $21,000. I guess a lot of people wanted to short everything on the push, but liquidations of short seller positions caused the market to continue higher and help market movers mark up the price of BTC. They thank you for that.
Though we will probably get a BTC pullback, which I will update on later today, I have serious doubts that we see a break of the November 2021 lows anytime soon. It's too easy to say we're going lower and to find a trade from here to take us there. It. Is. Too. Easy.
If it's an easy trade, it's probably wrong... even if the risk is good. Follow the trend.
Anyway - I believe USDT dominance will continue to decrease in the next several months even if we will have pullbacks along the way.