Combining USD Tether and USD Circle dominance charts (
USDT.D+USDC.D
) gives us a bigger picture of the strength of stablecoins in the crypto market, and applying the "TBO" (Trending Break Out) Indicator gives us a clearer picture of the strength (or weakness) of the current trend- and this trend is looking weak according to the "TBO". Here's why 👇
The circled yellow dots on the right-hand side of the chart are the "TBO" Breakdown, which tells us that an explosive move in the current direction might be coming soon. The inverse of this symbol, the "TBO" Breakout, can be seen on the left-hand side of the chart in clusters of three white dots (back in early January 2022 and again in May 2022). Both of these instances confirmed an explosive, bullish continuation for combined stablecoin dominance- which was bearish for crypto markets. Why?
Think of dominance as multiple connected, interdependent scales ⚖️ When stablecoin dominance increases, that means that the other dominance charts like
BTC.D
,
ETH.D
, and
OTHERS.D
will lose a bit of their dominance. Essentially, this shows that the crypto marketcap is favoring stablecoins over holding Bitcoin and other coins/tokens, signaling bearish conditions.
On the other hand, if stablecoin dominance is showing signs of weakness from the "TBO" Breakdown symbols and closing below the wedge formation, then that means a shift in the crypto marketcap. More crypto market participants are using their stables to buy Bitcoin and ALTs, which is a bullish signal. 👏
One last note about the "TBO" and this chart. You'll see 3 price labels at 10.23%, 8.76%, and 6.20%. These percentages are considered strong support by the "TBO" (indicated by the long green dotted lines). If the trend is going to be as explosive with this current cluster of "TBO" Breakdowns as it was with the previous instances with the "TBO" Breakout, we could see a strong, bullish continuation for crypto.
*note: we applied quotations to "TBO" to prevent hyperlinks to the ticker TBO 😊
The circled yellow dots on the right-hand side of the chart are the "TBO" Breakdown, which tells us that an explosive move in the current direction might be coming soon. The inverse of this symbol, the "TBO" Breakout, can be seen on the left-hand side of the chart in clusters of three white dots (back in early January 2022 and again in May 2022). Both of these instances confirmed an explosive, bullish continuation for combined stablecoin dominance- which was bearish for crypto markets. Why?
Think of dominance as multiple connected, interdependent scales ⚖️ When stablecoin dominance increases, that means that the other dominance charts like
BTC.D
,
ETH.D
, and
OTHERS.D
will lose a bit of their dominance. Essentially, this shows that the crypto marketcap is favoring stablecoins over holding Bitcoin and other coins/tokens, signaling bearish conditions. On the other hand, if stablecoin dominance is showing signs of weakness from the "TBO" Breakdown symbols and closing below the wedge formation, then that means a shift in the crypto marketcap. More crypto market participants are using their stables to buy Bitcoin and ALTs, which is a bullish signal. 👏
One last note about the "TBO" and this chart. You'll see 3 price labels at 10.23%, 8.76%, and 6.20%. These percentages are considered strong support by the "TBO" (indicated by the long green dotted lines). If the trend is going to be as explosive with this current cluster of "TBO" Breakdowns as it was with the previous instances with the "TBO" Breakout, we could see a strong, bullish continuation for crypto.
*note: we applied quotations to "TBO" to prevent hyperlinks to the ticker TBO 😊
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