- USDT dominance is at 3.86%, near support at 3.79% and 3.71%, which could impact crypto trends.
- A drop below these levels may lead to bullish action as traders move from stablecoins to cryptocurrencies.
- A short-term bounce may delay trends for weeks, but a decisive move is expected soon.
Tether dominance is currently at 3.86%, which is near crucial support levels that could shape the direction of the cryptocurrency market. Analysts expect two possible outcomes, each capable of significantly impacting investor sentiment and market trends.
$USDT.D is at the final support before it nukes and send crypto to valhalla
here are my 2 current scenarios
scenario 1 – tether dominance nukes now, we moon now
scenario 2 – tether dominance gets a fakeout bounce here for a few weeks, then nukes.. crypto gets a slight dip… pic.twitter.com/VuvMpes6oH
— Charting Guy (@ChartingGuy) January 19, 2025
USDT Levels Could Determine Crypto’s Next Move
USDT dominance now sits near important levels of 3.79% and 3.71%, and these numbers are critical to the market’s momentum. If dominance drops below these levels, it could lead to increased buying activity in cryptocurrencies like Bitcoin and altcoins. However, if dominance temporarily bounces, market uncertainty may persist for a few weeks before major trends appear.
Charting Guy, a leading technical analyst, suggests the market’s next move depends largely on whether USDT dominance holds above or falls below these key levels. He highlights that a breakdown could trigger immediate bullish activity in cryptocurrencies, but a fakeout recovery may delay market movements for a short period. His insights reflect the significance of these thresholds in the current trading environment.
Analyst Highlights Two Scenarios
In his analysis, Charting Guy identifies two scenarios, both pointing to the possibility of a larger crypto market breakout. The first scenario envisions USDT dominance sharply declining, which could lead to a quick rally as traders shift away from stablecoins into higher-risk assets like Bitcoin. This scenario suggests immediate confidence returning to the market, pushing cryptocurrencies higher.
The second scenario involves a temporary rebound in dominance at current support levels, lasting a few weeks before eventually falling further. This fakeout could result in short-term uncertainty, followed by stronger market movements as dominance resumes its decline. Charting Guy believes the market is in a phase of consolidation, which may soon lead to a more decisive shift.
Market Awaits Key Levels
The broader market impact depends on how traders react to these critical support levels. When Tether dominance declines, traders tend to leave stablecoins and invest in other cryptocurrencies, signaling renewed confidence in the market. Historically, such movements lead to increased volatility and gains for altcoins and Bitcoin.
These dynamics are drawing attention from traders who are monitoring USDT dominance closely. Levels at 3.79% and 3.71% remain pivotal, and the outcome could determine whether the market will see another bullish rally.
