This is not financial advice. This is for educational purposes only.
Dominion of Tithar
– Like this Bitcoin Dominance refers to the market cap of Bitcoin as compared to the whole market cap, the dominance of Tether is no different.
– This refers to the amount of capital invested in Stablecoin, especially Tether, at any given time.
– Since Tether (USDT) is a stable coin that tracks USD, Tether’s dominance increase suggests pullback or correction in cryptocurrency.
– An easy way to understand this is to think about the USD flowing in and out of the market.
– On the other hand, if the dominance of Tether decreases, it means that more capital is being invested to buy cryptocurrency, which is Bullish For the market as a whole.
– If you look at the graph above, you will definitely see the opposite correlation between it Bitcoin (Orange) and the dominance of the tither (black).
– Original Support and resistance Areas for Teether domination have also been identified.
– Since we are currently trading slightly above local support, marked in green, if we see the tether dominance falling below that level, we can expect Bitcoin Continue the assembly upwards.
Bitcoin Daily chart Analysis
– We tested Bitcoin’s annual open price at 47.2k, and failed to break above 200 Simple moving average (Purple).
– Bitcoin Returning to the $ 45-46k level, which is a completely anticipated move considering the pullback during breakout.
– As the overall structure remains Bullish And as we see the bullish moving average cross again in a row for a bull assembly, I hope we re-examine the 50k range again.
– It is unclear whether we will be rejected in those layers, or whether we will break it, but we will always treat it according to the layers we do.
Conclusion
With Tether’s dominance currently holding only local support, I think there is a high probability that we are seeing and seeing those support levels breaking down. Bitcoin Round up again. This is of course an indicator that you constantly want to refer to as you trade.
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