📈 Tether Dominance On Multiple Timeframes (Daily & Weekly)

21 Okt 2023

Ok my friends, we are back and this time our target is the Tether Dominance Index (USDT.D) chart.

This index can tell us whether the Cryptocurrency market as a whole is set to behave in a bearish or bullish way.

Here is the premise:

1) If Tether Dominance is bullish, people are selling Crypto (Bitcoin & Altcoins) for USDT.
2) If Tether Dominance is bearish, people are using their USDT to buy Crypto (Bitcoin & Altcoins).

This premise can be true or false, we truly don't care. What we know for sure is that Bitcoin and the Altcoins market rise when USDT.D drops. A negative correlation.

We've been tracking this for years.

The peak happened June 2022 which is the orthodox end/bottom of the bear market for Bitcoin.
So Tether Dominance peaked at the same time that Crypto bottomed.

Here you can see the chart with the All-Time High and long-term lower highs:


November 2022 USDT.D produced a lower high and continues to go lower and lower over the months.

In this same daily chart we can see USDT.D trading below EMA200 and MA200 with only EMA300 left as support. Below this level the crash starts, in reverse, Bitcoins bullish waves gains speed.

We also see rising bearish volume...

The MACD is trading below zero, below the 0.382 fib. retracement while aiming lower:

The RSI is pretty weak.

Weekly (the main chart above), USDT.D is moving below EMA10 and EMA21.
A close below these levels confirms bearish potential long-term.

We have nothing against Tether or this index, we are only using this chart as a signal to support our bullish bias when it comes to Bitcoin and the Altcoins.

This works as the U.S. Dollar Index (DXY), the same:

*) When the DXY is bearish, Bitcoin becomes bullish.
*) When the DXY becomes bullish, Bitcoin tends to be bearish.

This is the same pattern with Tether Dominance.

Summed up:

This index supports what we've been seeing, sharing and saying; The Cryptocurrency market is set for massive growth, maybe months of sustained growth.

The biggest wave of 2023.

Thank you for reading.
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Namaste.