🔥 Stablecoins Are Predicting A Massive Dump

In this analysis I want to take a look at the stablecoin (USDT/USDC) dominance. To construct this indicator yourself, simply put "(CRYPTOCAP:USDT+CRYPTOCAP:USDC)/CRYPTOCAP:TOTAL" in the symbol search area.

As seen on the chart, the stablecoin dominance (the stablecoin value / all crypto value) has been steadily rising over the years. There can be a multitude of reasons for the rise, but more important in this analysis is the fact that the stablecoin dominance seems to follow a clear bullish channel pattern, where it bounces from both the top resistance and the bottom support.

The stablecoin dominance is currently closing in rapidly on the bottom support. The last three times that the stablecoin dominance reached this support it always pinpointed a local Bitcoin top and signaled an incoming dump.

Will this happen again in the near future? We can't say for certain, but historically we're getting very close to a moment where Bitcoin can dump. There's definitely more room to grow, but risk is on the horizon.

Best case for the bulls would be that the dominance would fall through the support and continue to go down.