Can USDT Dominance Predict Bitcoin’s Peak?
Crypto analysts are always looking for ways to predict the future of Bitcoin. One analyst, Thomas, believes that USDT dominance could be a key indicator for Bitcoin’s local tops.
USDT Dominance: A Six-Year Pattern
Thomas claims that USDT dominance has accurately predicted Bitcoin’s local tops for the past six years. He noticed that whenever USDT dominance hits the bottom of a specific trendline, Bitcoin typically reaches a local peak.
Why USDT Dominance Matters
According to Thomas, USDT dominance is a significant indicator because the cryptocurrency market is heavily influenced by stablecoin swaps. When USDT dominance is high, it suggests that more people are moving out of Bitcoin and into stablecoins.
Predicting Bitcoin’s Bottom
Interestingly, Thomas also believes that USDT dominance can be used to predict Bitcoin’s local bottoms. He claims that it has successfully predicted previous bear market bottoms. While it may not provide an exact bottom estimate, it can give a good general idea.
Is the Bitcoin Top Already Here?
Based on the USDT dominance chart, Thomas believes that Bitcoin’s local top might already be in. The recent dip in USDT dominance suggests that we could be nearing a peak. However, he acknowledges that the market could rebound and test the lower end of the USDT dominance chart, just like it did in the previous bull run.
Looking Ahead
Thomas is optimistic that Bitcoin will retest the support line several times in the coming months, giving it more room to grow before reaching its bull run peak. Other analysts, like Rekt Capital, also believe that the cycle top is not yet here and expect it to come sometime next year.
Trading Strategy
Thomas plans to use the USDT dominance trendline to guide his long-term Bitcoin and Ethereum trades. He intends to buy when USDT dominance is high and sell when it’s low.
Bitcoin’s Current State
At the time of writing, Bitcoin is trading at around $56,400, up over 4% in the last 24 hours.
