USTUSD trade ideas
This is a warning: don't short the BTCUSDT pairFrom the technical point of view, USDT/USD has broken the 0.99 support and is trading between 0.95-0.99. The price has been rejected by 0.99 TWICE. I believe that somebody is distributing USDT to the retailed traders at this price zone. After the distribution, USDT/USD will fall. Which means, something may gonna happen, it may be a bad news. If USDT/USD fall, the profit of short position of BTCUSDT will not be as much as that of BTCUSD because of the depreciation of USDT. In the worst case, there might be a short squeeze of BTCUSDT pair even if BTCUSD is falling.
Inverted USDT completes an Elliot Wave cycleI'm seeing a full elliot wave pattern on the inverted USDT chart.
This could mean a few things.
1. USDT may be falling apart.
We have a clear accumulation pattern, but in this case it's actually dumping of USDT.
It's possible that this will accelerate downwards and USDT may become worthless.
2. USDT may start another bubble in cryptocurrencies.
The reduced price of tether is causing USDT to trade higher against all crypto pairs.
This could cause fomo and begin another bubble in crypto, which would eventually collapse.
3. USDT is being drained in favor of other cryptocurrencies.
While this is possible, the relatively low market cap of Tether suggests this isn't the case.
Some quick stats:
-USDT has had $1 Billion USD removed from it's market cap since Oct.
Source: coinmarketcap.com
-The Trendline on the bottom of the chart is from a monthly chart. This trendline tops in June, and has continued to hold into November.
I will update to show this after i have posted.
Whatever the reason this is happening, it's clear that USDT is not a "stable" coin as they claim.
In my opinion a stable coin should never have a 15% dip.
Trade safe!
Dollar remains in the defensive Dollar dropped dramatically yesterday and remains under the selling pressure on Friday. The risk-on environment coupled with pound strength and weaker US economic data fuelled a more aggressive sell-off in the buck across the board.
Today, the greenback may get a chance for a recovery. The US NFP employment report could serve as a catalyst for bulls should the jobs and wages come on a stronger side. Traders have been focused on wages data lately as this is one of the inflation indicators. So the increase by 0.2-0.3% could cap the negative pressure on the USD and cement the Fed rate hike expectations as well.
Market participants will also closely monitor the US-China trade war developments after the recent speculations about the prospects for resuming the constructive and healthy dialog between the two countries. Against this backdrop, investors resumed buying riskier assets and if the sentiment continues to improve, dollar safe-haven demand will ease further.
So the buck has a chance for a recovery in the short term, while in a wider picture, the currency may stay on the defensive.
Another BTC and ALT Pump is inevitable [BTC]If u are still trapped in Tether and dont want to sell at a loss what is your game plan? Exactly gtfo this Unstablecoin near 1$. This will then trigger the next BTC/alt hatch pump.
Meanwhile Btc is forming a bullish flag pattern desperately awaiting tether to dump.
Tether hodlers u were warned ;-)
Tether (USDT): Oversold and finding supportAnalyzing the Tether Price from Kracken, where according to cryptocompare , 90% of the volume derives from. The stable coin everyone's talking about that dropped 15% against USD. Will it tether back to $1?
Tether is finding support at the early 2018 levels of $0.94. It is currently 4.6% away from it's $1 value.
Daily TD Sequential is on a 9, hinting a reversal is due, with RSI deeply ovesold at 18-month record low of 7.5.
2% stop loss is set below the daily low of $0.9428. If it falls below it's daily low, it's in big trouble.
USDT correlation to BTCWhether you like tether or not it is very obvious that it’s value against USD overlayed BTC charts gives a correlation, which is: whenever tether is dropping hard a new BTC rally starts.
One of the reasons may be that tether is poorly maintained and can not sustain it’s pegged value as expected.
Nevertheless, it can give us hints about what will happen.
Don't Trust TetherUSDT crashed to $0.85 this morning and has since recovered to $0.93. This illustrates concerns that USDT is not as safe a haven as it is intended to be. Even if price becomes stable at 1 USD again I would advise against using USDT in favour of TUSD or another alternative stablecoin.
It is still a real possibility that Tether/Bitfinex are engaging in foul play. We'll see if anything comes of this.
Tether discount creating artificial premium between USDT & USDTether's current trading value against USD has created a huge spread between USDT and USD traded pairs. A possible reason is tether's long-standing lack of transparency or the perceived safer stable coin competitors. @AureliusBTC on Twitter noticed the gap on multiple spot exchanges using USDT vs. BitMEX long before I did, and linked this article about possible risk that USDT has on the cryptospace:
medium.com
Here's a CCN article about regulated stablecoins vs. tether:
www.ccn.com
Trusting financial giants with your money is the antithesis of bitcoin but it looks like a necessity to bring new investors to lose their money to trading bots and FUD.
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