USDT DOMINANCE: HIGH ALERT IN DAILY TIMEFRAME!!!
Hello traders, today I am here with a very important update on USDT Dominance. In this chart, I am gonna share some important levels and the possible outcome of the market in the coming days.
Timeframe: Daily.
Update: The USDT.D lately showed some bounce which led the market to drop down around -6%. The area from where the USDT.D bounced back is a crucial support line for the USDT.D.
History:
5th of May 2022: The USDT.D rallied 58%, a rally from 4.56% to 7.27%. This rally dropped BTC price by -30% (from $39864 to $25338). This rally lasted for 7 days.
8th of June 2022: USDT.D rallied 63% (5.78%-9.49%), and BTC went down to -43% from $31306-$17567 in 10 days.
10th of July 2022: The USDT.D bounced back from the support line but no significant rally to date.
Two Possible Scenarios:
Bullish Scenario: Historically, the USDT.D shows a possible rally towards the 11% level (60% jump). If this happens then BTC will possibly drop 36%-40% which means a $14k level where we have strong support for BTC.
Bearish Scenario: Historically the USDT.D might sound bullish but if we follow the patterns then the USDT.D is forming a hidden bearish divergence where the price increases but the RSI keep decreasing. The 21 MA is acting as strong resistance for the USDT.D. If at all we see a rejection then we can expect BTC to rally close to $30k.
Key levels:
21 MA resistance at 7.5%.
The support level at 7.15%
Conclusion: The chart is simple and clear, if the dominance breaks above the 21 MA, we can short the market and if it gets rejected then we can go long.
I hope this update will be helpful for you. The daily candle close is going to be a crucial one for the market. So keep your eyes wide open and trade safely.
Let me know in the comments what you think about the USDT Dominance.
Do show your support through likes and comments.
Thank you.
Timeframe: Daily.
Update: The USDT.D lately showed some bounce which led the market to drop down around -6%. The area from where the USDT.D bounced back is a crucial support line for the USDT.D.
History:
5th of May 2022: The USDT.D rallied 58%, a rally from 4.56% to 7.27%. This rally dropped BTC price by -30% (from $39864 to $25338). This rally lasted for 7 days.
8th of June 2022: USDT.D rallied 63% (5.78%-9.49%), and BTC went down to -43% from $31306-$17567 in 10 days.
10th of July 2022: The USDT.D bounced back from the support line but no significant rally to date.
Two Possible Scenarios:
Bullish Scenario: Historically, the USDT.D shows a possible rally towards the 11% level (60% jump). If this happens then BTC will possibly drop 36%-40% which means a $14k level where we have strong support for BTC.
Bearish Scenario: Historically the USDT.D might sound bullish but if we follow the patterns then the USDT.D is forming a hidden bearish divergence where the price increases but the RSI keep decreasing. The 21 MA is acting as strong resistance for the USDT.D. If at all we see a rejection then we can expect BTC to rally close to $30k.
Key levels:
21 MA resistance at 7.5%.
The support level at 7.15%
Conclusion: The chart is simple and clear, if the dominance breaks above the 21 MA, we can short the market and if it gets rejected then we can go long.
I hope this update will be helpful for you. The daily candle close is going to be a crucial one for the market. So keep your eyes wide open and trade safely.
Let me know in the comments what you think about the USDT Dominance.
Do show your support through likes and comments.
Thank you.
USDT.D Update:
So far the USDT.D is playing out as expected. As the dominance is dropping down we can see that BTC and other altcoins moving up. The market is good for scalping but not for long-term investments according to the USDT dominance. If it breaks down below the support level then we will have a whole different story.
That's it for now. I will update more on this later.