USDTUSDC_B8A67C.USD trade ideas
Are Stablecoins Fanning the Flames of the Crypto Fire Sale?
Cryptocurrency markets are sustaining a harsh sell-off that began on November 14th, 2018 and have continued since.
Could stablecoins be exacerbating the cryptocurrency sell-off?
Stablecoin holdings are liquid and relatively safe alternative to holding cryptocurrencies amid a bear market without leaving the asset class in favor of fiat holdings. Amid this past week’s cryptocurrency sell-offs, stablecoin volumes surged, indicating that investors rotated into stablecoin holdings in favor of falling cryptocurrencies -- this has worked to intensify the cryptocurrency sell-offs relative to historical market downturns.
Investors that continue to hold stablecoins are likely waiting for a re-entry point. Had these investors sold cryptocurrencies in exchange for fiat currencies, the possibility would remain that they will not re-invest in cryptocurrencies. As cryptocurrency prices continue to search for support levels, stablecoin holders may soon sell in favor of attractive cryptocurrency prices relative to 2018’s historical levels. Once this trend begins, it is possible that cryptocurrency prices may strongly rebound.
This is a warning: don't short the BTCUSDT pairFrom the technical point of view, USDT/USD has broken the 0.99 support and is trading between 0.95-0.99. The price has been rejected by 0.99 TWICE. I believe that somebody is distributing USDT to the retailed traders at this price zone. After the distribution, USDT/USD will fall. Which means, something may gonna happen, it may be a bad news. If USDT/USD fall, the profit of short position of BTCUSDT will not be as much as that of BTCUSD because of the depreciation of USDT. In the worst case, there might be a short squeeze of BTCUSDT pair even if BTCUSD is falling.
Inverted USDT completes an Elliot Wave cycleI'm seeing a full elliot wave pattern on the inverted USDT chart.
This could mean a few things.
1. USDT may be falling apart.
We have a clear accumulation pattern, but in this case it's actually dumping of USDT.
It's possible that this will accelerate downwards and USDT may become worthless.
2. USDT may start another bubble in cryptocurrencies.
The reduced price of tether is causing USDT to trade higher against all crypto pairs.
This could cause fomo and begin another bubble in crypto, which would eventually collapse.
3. USDT is being drained in favor of other cryptocurrencies.
While this is possible, the relatively low market cap of Tether suggests this isn't the case.
Some quick stats:
-USDT has had $1 Billion USD removed from it's market cap since Oct.
Source: coinmarketcap.com
-The Trendline on the bottom of the chart is from a monthly chart. This trendline tops in June, and has continued to hold into November.
I will update to show this after i have posted.
Whatever the reason this is happening, it's clear that USDT is not a "stable" coin as they claim.
In my opinion a stable coin should never have a 15% dip.
Trade safe!
Dollar remains in the defensive Dollar dropped dramatically yesterday and remains under the selling pressure on Friday. The risk-on environment coupled with pound strength and weaker US economic data fuelled a more aggressive sell-off in the buck across the board.
Today, the greenback may get a chance for a recovery. The US NFP employment report could serve as a catalyst for bulls should the jobs and wages come on a stronger side. Traders have been focused on wages data lately as this is one of the inflation indicators. So the increase by 0.2-0.3% could cap the negative pressure on the USD and cement the Fed rate hike expectations as well.
Market participants will also closely monitor the US-China trade war developments after the recent speculations about the prospects for resuming the constructive and healthy dialog between the two countries. Against this backdrop, investors resumed buying riskier assets and if the sentiment continues to improve, dollar safe-haven demand will ease further.
So the buck has a chance for a recovery in the short term, while in a wider picture, the currency may stay on the defensive.
Tether just spiked, which caused Bitcoin to dump a bitThe things that happen with Tether (USDT) are really interesting. There were large market orders on Poloniex and Kraken, which caused USDT to spike.
This caused Bitcoin to appear to dump relative to the USD and USDT.
Another BTC and ALT Pump is inevitable [BTC]If u are still trapped in Tether and dont want to sell at a loss what is your game plan? Exactly gtfo this Unstablecoin near 1$. This will then trigger the next BTC/alt hatch pump.
Meanwhile Btc is forming a bullish flag pattern desperately awaiting tether to dump.
Tether hodlers u were warned ;-)
Tether (USDT): Oversold and finding supportAnalyzing the Tether Price from Kracken, where according to cryptocompare , 90% of the volume derives from. The stable coin everyone's talking about that dropped 15% against USD. Will it tether back to $1?
Tether is finding support at the early 2018 levels of $0.94. It is currently 4.6% away from it's $1 value.
Daily TD Sequential is on a 9, hinting a reversal is due, with RSI deeply ovesold at 18-month record low of 7.5.
2% stop loss is set below the daily low of $0.9428. If it falls below it's daily low, it's in big trouble.
USDT correlation to BTCWhether you like tether or not it is very obvious that it’s value against USD overlayed BTC charts gives a correlation, which is: whenever tether is dropping hard a new BTC rally starts.
One of the reasons may be that tether is poorly maintained and can not sustain it’s pegged value as expected.
Nevertheless, it can give us hints about what will happen.
THE CAKE IS A LIETether is pumping the market - how else do you find that many buyers in under a minute to pump btc when 60% of the market is short
Tether implosion with bitfinex to coinbase premiumSo this is the complete Tether implosion chart. Watch Tether vs all other StableCoins. You can see the tether troubles reflected in the bitfinex / coinbase premium.
TetherTether, which has a fixed range, can be purchased in the range of 0,9950 - 0.9640 in the range of AL - 1.011 - 1.0655. in progress.
Tether implosion continuing.. bitfinex RIP?So the tether implosion is continuing, check out my previous post -> . In this one i added PAX.
Anyways we can clearly see that USDC is leading the USDT exodus. Probably all of Tethers US customers are moving into USDC and the Tether team can't keep up the peg.
USDT/USD analysisCurrently USDT had bounced off of the .5 fib levels. If it fails to hold above the .618 we can easily see a pullback. Safe trading!
