The entire crypto market is bleeding and bitcoin is hitting the lows after lows, we currently saw it coming down to $63k which is another 7% after the recent 10% dump where the market reached $67k from $73k. While the market bleeds, people will panic and take steps that will only harm them in future. I shared a blog about the panic phase of the market few days back and there I shared about the current market situation to happen.
If you read that I shared what to do in when the market starts to bleed and take blood bath. Anyways, today we will analyze the USDT dominance over the period of last five years to understand if we need to panic or stay calm at the moment. I am not giving any financial advise in this blog and decision to buy or sell should all be yours and yours only.
Below is the USDT dominance chart.
The above chart is for last five years. One thing that I will like to share is that this dominance is inversely proportional to crypto market, when USDT dominance increase the market observe the dips and when USDT dominance decrease the market observe pump and new highs.
I have highlighted a resistance below for the last five years and I see this resistance as a great resistance. Have a look at it first and then I will talk about it more.
We can see that this support which is at 4.84% is quite strong as it tested it multiple times over the period of last five years or we can say over the period of one bull cycle. I have circled those places from where the dominance was not able to break even at once and we must look at that resistance very carefully as if that breaks there will be a reason to panic in real but I don't think it will be broken that easily now.
The dominance was above that resistance for almost two years and this was the time when we saw the crypto market setting the lows for all the coins. To move above that again is something very difficult, the dominance of crypto market over USDT should take on and we should see a correction very very soon. I know halving is near and there is a dump that comes before it and who knows the current dump and bleeding might be the part of that itself.
Buy the dips, don't panic and hold your long term assets from the market. New levels will be achieved soon. At last I conclude that the market might take multiple dips and corrections before the halving and also this resistance that we talked about looks strong and should not be broken.
Thank you
