AlanSantana

πŸ“ˆ Tether Dominance Bounce vs Bitcoins Correction Analysis

Short
CRYPTOCAP:USDT.D   Market Cap USDT Dominance, %
Tether Dominance produced a bounce and this isn't surprising as this is within normal price action.

Last time USDT.D found resistance at EMA50.
Yesterday, the peak was hit at exactly this same level.

This resistance is there but likely to be taken out.
If EMA50 is confirmed as resistance a second time the below analysis isn't necessary.

After EMA50 or 7.04% Tether Dominance faces another challenge in the form of EMA100 (7.31%) and MA200 (7.46%), these resistance level are likely to hold.

The candles can pierce a bit above these levels before dropping or it can drop before reaching said levels but these are very likely to be confirmed as resistance on the first try as it happened with EMA50.

MA200, the black line on the chart, is a long-term indicator and thus this resistance needs to be confirmed.

Since it is the first time that USDT.D moves below this level since April 2021, it is important to retest it before continuing lower.

Once a level is turned, in this case from support to resistance, it needs to be tested as resistance to see if it holds.
  • If it holds, the USDT.D long-term downtrend is confirmed and the index is set to move much lower.
  • If it doesn't hold, the downtrend is likely to be over and USDT.D can resume growing.

Our belief based on reading multiple charts all across is that this level will be confirmed as resistance.

It can happen sooner than expected but the timing is for the market to decide.

Bitcoin moved from $15,500 to $25,250, which makes it normal if any type of correction, short or strong shows up.

But after the correction continues the growth.
  • Bitcoin is ultra-bullish above $22,222.
  • Bitcoin remains extremely-bullish above $20,000.

Breaking below $20,000 would be a very bad signal but the bullish potential would remain intact above the late November 2022 low.


As long as Bitcoin continues trading above its November 2022 low, the bullish potential for higher highs and higher lows long-term remains active.

Namaste.

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