This is an update to my last USDT.D idea:
With Bitcoin's recent rise, Tether dominance has seen a decline as investors rush out of cash and into risk-on assets. However, Tether dominance is now at a point in its trend where investors may begin looking to take profit and reposition back toward a cash-based setup.
This is heavily dependent on whether we see profit taking from the "Main Target" level outlined for Bitcoin in this post:
It also depends on the direction altcoins choose based on their current structures.
What is very important to recognize right now is where Tether dominance currently sits. Dominance has recently fallen back to around 7%, which is near the bottom of the parallel channel I have been monitoring. This also aligns with the 0.618 Fibonacci of the micro trend from the January 14th low to the February 6th high.
Based on the technicals, this is where market participants would typically look to reposition into cash, which would correlate with the beginning of a market decline.
However, if the opposite occurs and participants continue to deploy cash into risk-on assets, dominance is likely to fall further toward the 6.5% to 6.75% level, which would most likely align with BTC reaching $85,000.
With Bitcoin's recent rise, Tether dominance has seen a decline as investors rush out of cash and into risk-on assets. However, Tether dominance is now at a point in its trend where investors may begin looking to take profit and reposition back toward a cash-based setup.
This is heavily dependent on whether we see profit taking from the "Main Target" level outlined for Bitcoin in this post:
It also depends on the direction altcoins choose based on their current structures.
What is very important to recognize right now is where Tether dominance currently sits. Dominance has recently fallen back to around 7%, which is near the bottom of the parallel channel I have been monitoring. This also aligns with the 0.618 Fibonacci of the micro trend from the January 14th low to the February 6th high.
Based on the technicals, this is where market participants would typically look to reposition into cash, which would correlate with the beginning of a market decline.
However, if the opposite occurs and participants continue to deploy cash into risk-on assets, dominance is likely to fall further toward the 6.5% to 6.75% level, which would most likely align with BTC reaching $85,000.
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.