USDT.D Tether Dominance and Bitcoin price correlation
Hello Traders,
If you do not have a watchlist made with all of the market cap dominance data get one made. Feel free to DM me and I will send you my premade list with all of the important market caps and market map dominance charts that I use to understand how money is flowing in and out of the market. Below is the list if you would like to make your own.
Lets get into it. The chart on the top is USDT.D Tether market cap dominance. This data shows how much usdt is in the market compared to the rest of the crypto market. One thing you can see clear is the dominance of USDT in the market correlates directly with the price of bitcoin. When USDT dominance goes up the price of bitcoin goes down and vice versa.
The few point's highlighted on the chart are the recent highs and lows of the USDT.D and the highs and lows of Bitcoins price action. There are 4 data points on each chart that are highlighted in which 2 of these points coordinate directly with each other. The high of USDT.D on Jul 20th 2021 and the low of Bitcoins price on that date as well as the most recent all time high of bitcoin and the most recent low of USDT.D on Nov 8th 2021. There are two other data sets that do not directly correlate but, are very close, the low of USDT.D on Feb 19th 2021 and the high Bitcoin made on Apr 13th 2021 and the almost low that USDT.D made around that time. The reason for the non correlation of these two data point is due to money flowing into altcoins in the market as you can see if you look up most other coins aside from Bitcoin around these times most likely as a lot of market participants will often switch their BTC to the alt coin of their choice by flipping the BTC pairing of the coin on the exchange of their choice. It is very helpful as I said before to understand these different charts to get a grasp on where you may find the best investment for any given time period.
My only concern that I have for the future price going up is that both Bitcoin and USDT.D are both at critical points of resistance and support. If we assume that USDT.D going up would cause a Bitcoin price decrease and it bounces off of the area of previous resistance which it has also treated as support we would experience a drop in the market. Very similarly, as you see with the correlation of the previous support line Bitcoin is now under, we may see the price action come up to this area and treat it as resistance and then decrease.
All in all we are in a critical point for crypto over the next few weeks and need to see some real buying pressure come in from the bulls if we are going to disregard these important areas of support and resistance on both of these charts. Being as we are in an "if this then that" type scenario right now I suggest keeping a level head and making a plan for what is to come no matter the outcome with the data that you have available to you. There are a lot of shorts open and if the bulls start to win this race we may just get lucky and have a bit of a squeeze seeing a decent rapid increase in price that drives us up past these data points flipping these lines back to a more favorable outlook!
As always, have a green week!
P.S.
Here is my Market Cap watchlist:
CRYPTOCAP:XRP,CRYPTOCAP:ETH,CRYPTOCAP:DOGE,CRYPTOCAP:BTC,COINBASE:BTCUSD,CRYPTOCAP:TOTAL,CRYPTOCAP:TOTAL2,CRYPTOCAP:TOTAL3,CRYPTOCAP:OTHERS,CRYPTOCAP:ETH.D,BNC:BLX,CRYPTOCAP:BTC.D,BINANCE:ETHBTC,CRYPTOCAP:TOTALDEFI,CRYPTOCAP:OTHERS.D,CRYPTOCAP:USDT,CRYPTOCAP:USDT.D
Savvy
If you do not have a watchlist made with all of the market cap dominance data get one made. Feel free to DM me and I will send you my premade list with all of the important market caps and market map dominance charts that I use to understand how money is flowing in and out of the market. Below is the list if you would like to make your own.
Lets get into it. The chart on the top is USDT.D Tether market cap dominance. This data shows how much usdt is in the market compared to the rest of the crypto market. One thing you can see clear is the dominance of USDT in the market correlates directly with the price of bitcoin. When USDT dominance goes up the price of bitcoin goes down and vice versa.
The few point's highlighted on the chart are the recent highs and lows of the USDT.D and the highs and lows of Bitcoins price action. There are 4 data points on each chart that are highlighted in which 2 of these points coordinate directly with each other. The high of USDT.D on Jul 20th 2021 and the low of Bitcoins price on that date as well as the most recent all time high of bitcoin and the most recent low of USDT.D on Nov 8th 2021. There are two other data sets that do not directly correlate but, are very close, the low of USDT.D on Feb 19th 2021 and the high Bitcoin made on Apr 13th 2021 and the almost low that USDT.D made around that time. The reason for the non correlation of these two data point is due to money flowing into altcoins in the market as you can see if you look up most other coins aside from Bitcoin around these times most likely as a lot of market participants will often switch their BTC to the alt coin of their choice by flipping the BTC pairing of the coin on the exchange of their choice. It is very helpful as I said before to understand these different charts to get a grasp on where you may find the best investment for any given time period.
My only concern that I have for the future price going up is that both Bitcoin and USDT.D are both at critical points of resistance and support. If we assume that USDT.D going up would cause a Bitcoin price decrease and it bounces off of the area of previous resistance which it has also treated as support we would experience a drop in the market. Very similarly, as you see with the correlation of the previous support line Bitcoin is now under, we may see the price action come up to this area and treat it as resistance and then decrease.
All in all we are in a critical point for crypto over the next few weeks and need to see some real buying pressure come in from the bulls if we are going to disregard these important areas of support and resistance on both of these charts. Being as we are in an "if this then that" type scenario right now I suggest keeping a level head and making a plan for what is to come no matter the outcome with the data that you have available to you. There are a lot of shorts open and if the bulls start to win this race we may just get lucky and have a bit of a squeeze seeing a decent rapid increase in price that drives us up past these data points flipping these lines back to a more favorable outlook!
As always, have a green week!
P.S.
Here is my Market Cap watchlist:
CRYPTOCAP:XRP,CRYPTOCAP:ETH,CRYPTOCAP:DOGE,CRYPTOCAP:BTC,COINBASE:BTCUSD,CRYPTOCAP:TOTAL,CRYPTOCAP:TOTAL2,CRYPTOCAP:TOTAL3,CRYPTOCAP:OTHERS,CRYPTOCAP:ETH.D,BNC:BLX,CRYPTOCAP:BTC.D,BINANCE:ETHBTC,CRYPTOCAP:TOTALDEFI,CRYPTOCAP:OTHERS.D,CRYPTOCAP:USDT,CRYPTOCAP:USDT.D
Savvy
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