USDT Dominance Falls, BTC Rises: What It Means for TradersThe chart highlights the inverse relationship between BTC/USDT and USDT.D (Tether Dominance). When USDT.D drops, capital flows out of stablecoins into Bitcoin, driving BTC’s price higher.
Conversely, a rise in USDT.D signals increased caution, often leading to BTC price declines. This correlation helps traders gauge market sentiment and identify potential trend shifts.
Usdtd
Capital Shifts in Crypto: Liquidity, Corrections, and the FutureOn a growing market, each correction serves as a mechanism for capital redistribution. In the cryptocurrency sector, where the market is relatively small, profit-taking on major assets like Bitcoin (BTC) and Ethereum (ETH) has a significantly negative impact on less capitalized altcoins.
Analogy with traditional markets
Traditional financial markets follow similar principles. Here, Bitcoin can be compared to gold, while altcoins are akin to stocks or bonds. When positions in gold are closed, the fluctuations are less noticeable due to the market's greater liquidity and volume. However, stocks, with their lower capitalization, show significant volatility, leading to an equivalent increase in potential dollar gains.
Depth and structure of the crypto market
The crypto market still lacks depth, predominantly involving small-scale investment funds by global standards. Competition among expert traders and investors is limited, leading to low profitability or zero gain on bear markets, where professionals trade against each other, for instance, Wintermute traders against GSR traders. In traditional markets, where both professionals and retail investors participate, professionals have an advantage due to more variables.
Liquidity and spread
Both markets allow for earning on the spread, although currently, spreads are relatively small. The redistribution of liquidity, especially during market downturns, is driven by both psychological factors and the technical aspects of position closing, particularly when comparing futures trading with combined spot and futures trading.
Indexation and synthetic assets
The creation of indexes in the crypto sphere could be the next step. There are already examples like Reserve Rights (RSR), where real-world assets are tokenized to create stablecoins. Forming indexes similar to the S&P500 or US100 could combine crypto assets by similar characteristics, increasing liquidity and opening new investment avenues. However, this could lead to issues similar to those in 2007 in traditional markets, where "packages" included high-risk assets.
Conclusion
Implementing such tools might soften the liquidity redistribution effect for retail investors but could complicate things for funds and market makers, reducing their ability to buy assets at reduced prices. The cryptocurrency market is at the stage of mass adoption, and upon completion of this process, new forms of digital money may emerge.
Written by Alexander Kostenich (WIDECHAR),
Horban Brothers.
USDT.D Update. USDT dominance (USDT.D) appears to form a descending triangle or wedge pattern, with two converging trendlines indicating a potential breakdown.
The upper trendline is descending, indicating consecutive lower highs.
The lower trendline is relatively flat, but rising slightly.
USDT.D is approaching the lower trendline, indicating potential support.
The path drawn indicates a potential breakdown below the lower trendline.
Downward continuation is anticipated in the orange zone (3.40%–3.10%).
Resistance: ~4.20%
Support: ~3.90% and orange zone around 3.40%–3.10%
If USDT dominance falls, it usually suggests that traders move capital from stablecoins (USDT) to riskier assets like Bitcoin or altcoins, indicating a potential bullish sentiment in the broader crypto market.
Let me know if you’d like further assistance or adjustments!
DYOR. NFA
USDT Dominance (USDT.D)USDT Dominance (USDT.D)
The USDT Dominance chart reflects the percentage of the cryptocurrency market capitalization held in Tether (USDT), providing insights into market sentiment and risk appetite. Here's an analysis based on the chart structure:
Key Levels and Observations:
Supply Zone at 6.50%:
The 6.50% level acts as a critical resistance where the "Bull vs Bear Flip" is observed. This zone marks the upper limit of a supply area, where sellers are dominant.
A rejection here could signal an increase in market risk appetite as funds flow out of USDT and back into crypto assets.
Demand Zone at 3.63%:
The 3.63% level serves as a strong demand zone, historically supporting USDT.D during bearish periods in the broader market.
This is marked as the lower boundary of the "Bull vs Bear Flip," indicating increased caution if revisited.
Median Level at 4.48%:
The chart highlights the 4.48% level as the median point, balancing bullish and bearish sentiment. Current price action is hovering around this zone, signaling indecision and a potential breakout or breakdown.
Harmonic Pattern Formation:
A harmonic pattern is evident, with key retracement levels at 0.449 and 0.734 marking the price's journey from points X, A, B, C, and D.
Point D, near 3.63%, aligns with the demand zone, completing the pattern and triggering a potential bounce.
Rounded Bottom Formation:
A rounded bottom is visible on the left side of the chart, indicating a previous reversal from bearish to bullish sentiment. This reinforces the importance of the 3.63% level as a long-term support.
Bear Zone at 2.83%:
Below the demand zone lies the 2.83% "Bear Zone," signaling extreme bearish sentiment for USDT dominance and likely strong risk appetite in the crypto market.
Scenarios to Watch:
Bullish Scenario:
A breakout above the 4.48% median and sustained movement toward the supply zone at 6.50% would signal increased market caution as investors move to USDT.
If the 6.50% level is breached with volume, USDT.D could trend higher, indicating market-wide fear or profit-taking in crypto.
Bearish Scenario:
A breakdown below the 4.48% median would confirm bearish momentum, with the next target being the demand zone at 3.63%.
A fall below 3.63% could lead to a retest of the 2.83% "Bear Zone," indicating renewed bullish sentiment for crypto assets.
Volume Analysis:
Recent volume spikes during the recovery indicate significant interest at current levels.
However, diminishing volume near resistance suggests hesitation among market participants, requiring confirmation of the next directional move.
Conclusion:
The USDT Dominance chart is currently in a state of equilibrium around the median level (4.48%), reflecting market indecision. The next significant move will likely depend on whether the supply zone (6.50%) or demand zone (3.63%) is tested first. Traders should watch for volume confirmation and macroeconomic catalysts for the next trend in risk sentiment.
Update on USDT DominanceHappy New Year, Traders!
I hope your New Year's celebrations are going well. Here’s a quick update on USDT Dominance (USDT.D) to help you better understand the market.
USDT.D has rebounded as expected, so it seems that avoiding futures trading and shifting from BTC and other altcoins to USDT was the better choice.
Currently, USDT.D is at 4.32%, with a strong resistance level between 4.8% and 5%. To create a rejection, it needs to maintain candle closures below these levels, which would eventually lead to a rebound in BTC and other altcoins.
However, if USDT.D surpasses this resistance, it could create a stressful situation in the market. On the other hand, a rejection of USDT.D at these levels would bring relief to the market.
Let’s see how the New Year begins. Feel free to let me know if you’d like updates on specific altcoins.
Thank you, and trade safely!
Altcoins Dump as USDT.D Gains Strength: What to Do Next?USDT.D has broken above the symmetrical triangle pattern and is gaining strength, which is a bearish signal for altcoins.
As USDT.D strengthens, altcoins are experiencing a sell-off. It is advisable to avoid opening long positions in the current market environment.
Instead, consider focusing on stablecoin or staying out of the market for a few days to minimize potential losses.
Will USDT.D Rejection Spark an Altcoin Rally?USDT dominance is nearing a key resistance trendline while holding above critical support.
A rejection here could signal increased capital into altcoins, boosting their prices. However, a breakout above the trendline may pressure altcoins further.
Watch closely for the next move!
DYOR, NFA
USDT.D Testing Critical Resistance: Breakout or Pullback?USDT.D has recently broken out of a falling wedge pattern, indicating a potential shift in momentum. The price is currently testing a critical resistance zone near 4.30%. A breakout above this level could signal further dominance for USDT, suggesting risk aversion in the crypto market.
If the resistance holds, a pullback toward the 4.20% support zone is likely. However, a confirmed breakout could lead to a continuation of the upward trend, potentially targeting the 4.40% level.
DYOR, NFA
USDT Dominance Chart Analysis !4.50%–4.60% (orange zone): This level represents a crucial resistance zone, where previous upward moves have stalled. A breakout above this level will signal bullish momentum in USDT dominance, increasing risk-off sentiment in the market.
Primary Support: 4.10%–4.20%
This zone acts as a near-term support level. A breakdown below this could lead to a further decline in USDT dominance.
Secondary Support: 3.80%–3.90%
This is a crucial demand zone, where buyers have historically come forward. If the price reaches this zone, it could signal a reversal.
The 21-period MA (thin line) and 200-period MA (thick green line) are important indicators to watch. USDT dominance is trading near the 21 MA, while the 200 MA is below, indicating potential support.
Symmetrical Triangle Formation:
USDT dominance is consolidating within a triangle pattern. A break on either side (up or down) will determine the next significant move.
Upside Breakout: This could lead to a retest of the 4.50%-4.60% area.
Downside Breakout: This could lead to a decline towards the 4.10%-4.20% support, with a possible continuation towards the 3.80% area.
DYOR, NFA
@Peter_CSAdmin
Tether dominance is bouncing well#usdt #tether dominance has bounced after made bullish divergence in daily candlestick size in mid term and now made w bounce in LTF. Accumulation is fine. Strong #usdtd if continues this odyssey, will surely damage current #btc and #altcoins ' prices in LTF. Not financial advice.
USDT Dominance Analysis!!The area highlighted in yellow is around 3.80% to 3.90%, which aligns with recent higher lows and historical demand.
4.20%: Immediate resistance where the price is currently reacting.
The dashed line indicates 4.45%: Key resistance and potential target.
Descending resistance trendline: Broken upwards, indicating a bullish reversal.
200 MA (green line):
Acting as dynamic resistance, now broken.
The descending trendline and breakout above the 200 MA suggest that USDT dominance is gaining momentum.
The price may revisit the 4.00%–4.10% area for a retest before moving towards the 4.45% target.
If dominance sustains above 4.00%, continuation towards 4.45% is likely.
Keep an eye on strong candles and rising volume to validate the breakout.
A drop below 4.00% will invalidate the bullish setup, with a possible retest of the 3.80%-3.90% support area.
The chart shows a clear breakout from a downtrend, indicating a bullish bias.
Keep an eye on a retest of support and follow-up towards 4.45%.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your research and consult a financial advisor before making investment decisions.
For updates on other coins or personalized insights, feel free to reach out via DM.
@Peter_CSAdmin
$COIN Coinbase fakeout and pump?Can't even explain why but I feel like something similar might happen. Looks a bit dumpy tho.
I wouldn't enter short. Just wait for this fakeout, might be local bottom. and Pump that would take CRYPTOCAP:BTC back up and further push down CRYPTOCAP:USDT.D
Might not even reach the entry price for long. ~295$
USDT.D retest 5.5%?USDT.D been falling for 90days with no real retests, this might be it.
Also fully completed previous projection of a Dump.
Fibb Golden zone around 5.5%
Also BTC looks like it's in Diamond Top pattern. If that plays out we might see CRYPTOCAP:BTC at $85k.
But this is Bullrun so probably some Elon musk post will randomly revive market out of nowhere and the dump will stop mid way.
Keep eyes on twitter.
USDT the big rebound - The Rise from the Ashesin my newest finding i will tell you about USDT rise from the Ashes
as you can see we build a very volume heavy low
corresponding to a low in March and a really good rebound is about to happen
be prepared for heavy downturns in the crypto market
as always, just my opinion and looking for ppl who share thougths on it
no trading advice
USDT Dominance likely to show a rebound.Here’s a quick update on USDT Dominance (USDT.D):
The last time I posted about USDT.D, I specifically mentioned a drop to 3.8%, followed by a rebound. Currently, USDT.D has reached 4% and has dipped as low as 3.95% so far.
This is a point where we need to stay vigilant with our positions.
If the rebound happens anywhere near the support level, it’s likely to push USDT.D back to the trendline or resistance at 4.8%. Such a move could trigger a healthy correction in the market—in other words, a final chance to buy the dip.
With just one day left until the weekly close, let’s observe the market carefully.
Always conduct your own research and analysis before investing.
$USDT.D Has Fallen Off A CliffTrump's LANDSLIDE victory and Republican's controlling Congress has signaled full RISK-ON across the board in markets.
This has caused everyone to sell their stables for CRYPTOCAP:BTC and Alts.
Expect another 10% worth of CRYPTOCAP:USDT to be dumped into the market before we see a real correction.
This will put CRYPTOCAP:USDT.D ~3.8% which was the local top in March.
The correction should be short-lived as we make our way back down to 2-2.5%
USDT dominance chart update details: “death cross” has formed, where a short-term moving average (possibly the 50-day, shown in red) has crossed below a long-term moving average (possibly the 200-day, in green). This pattern typically suggests a bearish signal, indicating the potential for further declines in USDT dominance.
The overall direction appears downward, with USDT dominance testing lower support areas within a descending channel.
Key support levels are marked in green and gray. The current price level is slightly above the major support area around 5.0%. The chart suggests a possible continuation downward, with the next significant support area near 4.0%.
The large downward arrow indicates a bearish outlook for USDT dominance, suggesting potential further declines toward the 4.0% range if current support levels fail to hold.
This chart indicates that if USDT dominance continues to decline, this could correlate with a potential uptrend in the broader crypto market, as money flows from stablecoins into other assets.
Disclaimer: This analysis is for informational purposes and is not financial advice. Always stay updated with market movements and adjust your trading strategies as needed.
You can DM us for information on any other coin.
@Peter_CSAdmin