The USDT dominance chart is not a chart I see on TradingView that often. However, it offers good insights whether investors are selling their crypto for USDT, or spending their USDT to buy crypto. Generally, when USDT.D goes up, crypto prices go down. When USDT.D goes down, crypto prices go up.

Since the start of this bull-cycle, USDT.D has been trading in a clearly defined horizontal channel. Once USDT.D reaches the resistance area , the (local) bottom has either been reached or is very close. Once USDT.D reaches the support area , the top is either in or very close. I've marked the last four major moves on the chart, green being bullish moves and red being bearish moves.

Furthermore, the 3-day RSI is significantly overbought. The last two time this happened it signaled that the bottom was very close and we were prone for a bullish move.

Be aware that there's still more room to fall. We have a very important FOMC meeting later today. A bullish market reaction might trigger a further decline in USDT dominance and a corresponding bullish move from crypto. A bearish reaction might send USDT.D further up the resistance area .

Nevertheless, most of the damage from the current correction has already been done.

Happy trading!

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