USDT DOMINANCE: A BREAKOUT OR FAKEOUT???
Welcome folks to this interesting update on USDT dominance. For today's update, I am using the same 12 hours chart.
In the last 24 hours, I posted a similar chart on USDT.D where I pointed out the support and resistance level. And as soon I posted the idea, BTC dropped and the USDT.D bounced back, breaking and closing above the resistance trendline.
What this could probably mean? Does it mean that we are done with the market?
Well, many traders might be thinking the same question but here's an interesting thing in this exact same chart. Just look at the dotted trendline drawn both in the chart and the RSI. The USDT.D might have broken above the trendline but after a big bounce, the USDT.D stopped right at the dotted trendline. And in the RSI, the volume is getting rejected from the trendline and it is unable to break through it.
So, is it a fakeout or an actual breakout?
This could be both considering the below-mentioned conditions.
Condition 1: If the USDT.D gets further rejected and the candle drops back under the upper trendline then we can consider this as a fakeout.
Condition 2: If the USDT.D bounces back in the next closing of the candle breaking and closing above the 5% resistance, we should be worried if we are holding any positions.
The RSI on the other hand is still valid and I will strongly stick to it. In this current scenario, I am out of my leverage trading, completely. I have my spot holdings which are ok so far.
Let me know what you think about the USDT dominance.
Do like and follow for more updates. Thank you.
In the last 24 hours, I posted a similar chart on USDT.D where I pointed out the support and resistance level. And as soon I posted the idea, BTC dropped and the USDT.D bounced back, breaking and closing above the resistance trendline.
What this could probably mean? Does it mean that we are done with the market?
Well, many traders might be thinking the same question but here's an interesting thing in this exact same chart. Just look at the dotted trendline drawn both in the chart and the RSI. The USDT.D might have broken above the trendline but after a big bounce, the USDT.D stopped right at the dotted trendline. And in the RSI, the volume is getting rejected from the trendline and it is unable to break through it.
So, is it a fakeout or an actual breakout?
This could be both considering the below-mentioned conditions.
Condition 1: If the USDT.D gets further rejected and the candle drops back under the upper trendline then we can consider this as a fakeout.
Condition 2: If the USDT.D bounces back in the next closing of the candle breaking and closing above the 5% resistance, we should be worried if we are holding any positions.
The RSI on the other hand is still valid and I will strongly stick to it. In this current scenario, I am out of my leverage trading, completely. I have my spot holdings which are ok so far.
Let me know what you think about the USDT dominance.
Do like and follow for more updates. Thank you.
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