Bitcoin, Tether, and the coming weeks.
Bitcoin, Tether, and the coming weeks.
I have compared the total market cap of Tether to Bitcoin and found an interesting parallel between their movements.
As Tethers market cap breaks down from 5b to 2b as we saw in November 2020 to May 2021 Bitcoin finds new ATH at 65k. When Bitcoin breaks down at 65k and retraces we see Tether break out of its downtrend and rises back to a market cap of 5.7b while Bitcoin breaks all the way down to 28k for a loss of roughly 53%. We then see Tether market cap break down at the exact time Bitcoin breaks out for another run upwards.
These charts run exactly inverse of each other, or at least have for the last year. Just this week we saw a new trend break of Tethers market cap to the upside inside its current movement. At the same exact time Bitcoin is breaking down again.
What does this mean moving forward?
Well the other chart I posted gives a little more detail.
We have a lot going on here,
◉ Fib Retracement from ATH in April has a support line right on the .618
◉ Fractal from previous rounded move upward puts a bounce right on the green box at the .618 with a projected target at the 1.618
◉ 20w SMA is sitting right at yellow local support, fractal playout, last resistance touch at 52k in September, AND the .618 fib
◉ Not shown in images but I see bullish divergence appearing on the Stoch RSI on the daily BTC chart as well. Too soon to call though.
Keep in mind fractals don't always play out and are more subjective than objective when it comes to analysis. But what all these things tell me is there is a lot of convergence of support around the 50k-53k levels. This paired with the data gathered from USDT market cap tells me we are at a major decision point for the continuation of the bull market or a long and cold winter ahead of us. We could have a fake out pump on the market cap of USDT and have a strong bounce at these levels in the coming days to weeks or if the MC of Tether continues to rise its likely we will lose this support level as more money is shifting into stable coins.
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