With a remarkable rise, the markets appear to have come under bullish influence ever since the start of the year. This may manifest the possibility of the bull taking over the markets, triggering a healthy upswing for the rest of the year. However, some of the technical indicators suggest the markets may soon witness turmoil that may shake up the entire space to a large extent.
USDT Dominance Declines
The USDT dominance suggests the dominance of the stablecoin Tether in the crypto markets. The rise and fall of dominance has a huge impact on the crypto space, which suggests whether market participants are accumulating USDT or cryptos like BTC or ETH. The dominance is declining, indicating the demand for cryptos is increasing comparatively.
- After maintaining a steep descending trend since October 2023, the USDT dominance has dropped and breached below the descending triangle support
- A retest below the triangle support may validate a breakdown, flashing a bearish signal that may lead the levels close to 4% from the current levels around 5.65%
- With this, the possibility of an extended bullish phase may prevail, as the USDT dominance is inversely related to the crypto markets.
Bitcoin Dominance Follows the Trend
Bitcoin dominance plays a major role in determining the next course of action for BTC and other altcoins in the market. The rising BTC dominance suggests the liquidity flow in Bitcoin, which may compel the altcoins to trade sideways. Besides, a drop suggests the traders have shifted their focus towards other altcoins.
- The BTC dominance also appears to be in dire straits, as the levels are unable to regain the crucial resistance at 51.99%
- The levels broke down from the rising wedge and reached close to the lower support at 50.54%, which could have paved the way for the altcoins to rise
- However, a successful retest above the interim resistance may bring BTC bulls back in action, who may elevate the price towards new highs
The above charts go in favour of the altcoins, as the drop in BTC dominance indicates that the altcoins will undergo massive price action. Some of the altcoins appear to have reached their overbought levels due to a minor correction. However, this may be a short-lived price action, beyond which a fresh AltSeason may begin.