Welcome to this extensive analysis on USDT Dominance. If you are reading my updates for the first time, make sure you follow me if you want the most complex charts Explained in the most simplified manner. I also post margin and futures trade setups.
Now, let’s get to the chart. If you are not familiar with this index let me tell you this index is inversely proportional to BTC and ALTS in general. This means when this index shows some green candles you will see the market starts dumping and vice versa. USDT Dominance is currently moving around the upper resistance at 4.50+ level. Few points to keep in mind:-
1. We can see a long wick which is a sign of rejection in the current candle making in a strong Doji (Evening star pattern)
2. As per fractals Every time this index hits the 2 years resistance line we have seen 6 to 8 weeks of rejections and consolidation around the resistance followed by 15 to 20 weeks of Bullish rally across the market.
3. Multiple Indicators show signs of bearish momentum in the weekly chart.
4. MACD is a lagging indicator showing potential for a bearish crossover within the next few weeks.
5. Double Top formation with rejection.
6. LTF Shows Retest also signs of reversal(Chart will be posted below this update)
Based on all of these facts a bearish rejection is possible. However, keep in mind it can make a triple top too to finally flush the remaining late longs which will be fueled by the current conflicts between Russia and Ukraine. So everything is aligning perfectly IMHO,
What do we need? A confirmation candle below the current weekly candle. The current candle closes in 7 hours. So make sure you follow me and keep an eye on my updates. I do not post a lot but I do only when it's needed.
So let me just make it simple for you. Unless USDT Dominance breaks and closes above the red resistance area It's highly likely we will see a major rally throughout the market. Both in BTC and ALTCOINS.
Invalidation:- A weekly close above the red zone will invalidate this chart.
MY TRADING PLAN:- I'll assess BTC.D, USDT.D, TOTALMCAP, TOTAL2, and BTC all together and enter when I finally see the confirmations. I'll enter the market to trade on leverage and also hold spots for 15 to 20 weeks depending on both technicals and fundamentals. To be honest, if everything goes as it seems we will see a bullish rally across the market in March April and May followed by the dump in June and July.
I hope this analysis clears your mind and all your doubts about the current trend. Please do not take this idea as financial advice, this is simply meant for educating you to make better trade decisions. Let me know what you think of this chart. Do share your views in the comment section and do not forget to hit the like button.
Thank you
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This is how the Daily looks. Broke a rising channel and currently retesting. We can expect multiple retests and expect a triple TOP in the worst scenario. Other than that this chart already looks bearish which is good for the market in the mid-term.