CoinDesk Reports:
Cryptocurrency analyst Thomas has utilized several on-chain metrics to assess whether Bitcoin has entered a bull market peak. This time, cryptocurrency analyst Thomas suggests that USDT dominance determines Bitcoin’s market position.
How USDT Dominance Predicts Bitcoin Tops
In a post on X (formerly Twitter), Thomas claimed that USDT dominance has predicted every local peak for Bitcoin over the past six years. He noted that whenever USDT dominance touches the bottom trendline, Bitcoin invariably experiences a clear local top, a point underscored by analysts on charts. Thomas added that anyone employing this metric has consistently been ahead in selling during each cycle’s initial phases.
Source: X
The cryptocurrency analyst posited that USDT dominance serves as a viable predictor of Bitcoin tops, attributing its significance to the positive longer-term trends in USDT-D over time. He emphasized that USDT-D holds importance as market hedging within and outside stablecoin bounds.
Simultaneously, Thomas mentioned that USDT dominance can also be applied inversely to predict Bitcoin’s local bottoms, citing its past use in forecasting every local bottom of previous bear markets. While conceding that USDT-D may not provide precise bottom estimates, he noted it offers a good approximation.
Source: X
Local Bitcoin Tops Potentially Reached
According to charts shared by Thomas, local highs for Bitcoin may have already occurred, coinciding with USDT-D touching the trendline again as highlighted by the analyst. When queried by a follower about whether this indicated a move towards new lows for Bitcoin, Thomas responded it wasn’t guaranteed, as the market could rebound, touching lower boundaries of the BTC/USD rate, much like the last bull market.
The analyst remains optimistic about such occurrences, suggesting the market will “retest support lines multiple times” over the coming months, potentially allowing Bitcoin more room to maneuver before reaching a peak in this market cycle. Other cryptocurrency analysts, such as Rekt Capital, have also affirmed the cycle’s peak is yet to come, with historical trends suggesting it may arrive next year.
Meanwhile, Thomas disclosed intentions to use USDT-D trendlines for guiding long-term trades in BTC/ETH. He plans to buy when USDT dominance is at trendline highs and sell when it bottoms.
According to CoinMarketCap data at the time of writing, Bitcoin is trading around $56,400, marking a more than 4% increase in the past 24 hours.
BTC Price Rises Above $56,700 | Source: BTCUSD on Tradingview.com