USDT dominance Bearish formationGreetings traders,
USDT dominance (log chart) had broken down the macro trend when BTC started rallying end of 2023.
As BTC peaked in March this year, USDT started grinding up and is currently re-testing those level from beneath, and has produced another lower high on August 5th.
Another bearish pattern is forming, a rising wedge, that typically breaks to the downside.
Very visible on the daily chart. MACD has printed a bearish divergence as well.
Before breaking down however, there is a probability of another move up towards the horizontal resistance and the descending trendline. This will have BTC back around 52-53k region where last week CME gap is.
Obviously it is possible, but less likely in my opinion, that this chart will break to the upside. This would mean BTC going to low 40k.
I personally use USDT chart as a confirmation of BTC direction, not as leading indicator.
And this chart is giving me more conviction that very soon BTC and altcoins will break to the upside.
Good luck everyone.