📈 Tether Dominance 25-Feb. Update = Bitcoin Bullish

5 mar 2023

For this update, I left the chart from the 25-Feb. trade idea intact where I mention:

"Last time USDT.D found resistance at EMA50.
"Yesterday, the peak was hit at exactly this same level.

"This resistance is there but likely to be taken out."

USDT.D is now facing the next resistance in the form of EMA100, this one is stronger and less likely to be taken out.

In fact, I believe that this one will hold but let's see what the chart has to say as believes don't hold much value in this game.

The trading volume has been low and it is going lower.
The RSI is curving down and showing some bearish divergence.

Technically speaking, solely focusing on the chart, this resistance can also break but the next one at 7.51% is super strong and the last level, MA200.

Conclusion

We are seeing a bounce take place but the bearish bias remains strong.

The initial move is a bearish breakdown that happened in January, after a lower high in December.

This drop continues active below 8.77%.
But we are looking at a drop now and Bitcoin moving ahead.

If it moves to MA200 it should all still happen within a matter of days, say 5-9 days max and that's it for this bounce.

For those not familiar with why I am reading this chart.

Bitcoin (BTCUSD) and Tether Dominance (USDT.D) have an inverse relation.

• When USDT.D drops, Bitcoin goes up.
  
• When USDT.D goes up, Bitcoin drops.
  

USDT.D is now facing resistance as EMA100 and if this resistance holds, we get a continuation of the previous drop... And Bitcoin goes up.

Namaste.