USDT Dominance Breakdown
Weekly Trend Break and Retest Confirmation:
- USDT dominance broke its previous uptrend on the weekly chart, showing a significant change in momentum.
- After breaking below the trendline, it retested this line but only left a wick above, indicating strong downward pressure.
- This retest concluded with a weekly candle closure below the trendline, reinforcing a potential shift to bearish momentum.
Daily Chart Insight – Retest Zone at 5.51%:
- On the daily chart, the retest zone was at 5.51%, aligning with the 0.786 Fibonacci retracement level, a common resistance area after a trend reversal.
- A daily candle closed below 5.51%, confirming this level as a new resistance.
- This setup created a lower high on the chart at 5.51%, with the prior high recorded at 5.92%. The formation of this lower high is a bearish indicator, suggesting downward continuation for USDT dominance.
Key Target Levels for USDT Dominance:
- Following this bearish setup, the next key target for USDT dominance is at 4.91%, which also coincides with the 0.786 Fibonacci level, reinforcing its significance as a support level.
- Subsequent target levels include 4.76%, and finally, the critical zone at 4.36%, which lies in the 1.618 Fibonacci level.
- Reaching 4.36% would be especially significant, as it would break the previous higher high of 4.68%, marking a strong bearish momentum in USDT dominance.
Implications for the Market:
- A decrease in USDT dominance suggests a shift as investors potentially move away from stable assets like USDT and into riskier assets such as Bitcoin and altcoins.
- Breaking down to the 4.36% level would reinforce this bearish outlook on USDT dominance, signaling a potential bullish phase.
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