🔍 Key Observations:
Current USDT Dominance: ~4.39%
Major Support Level: Around 3.76% (marked by the blue line), which has acted as a strong bottom multiple times since 2022.
Trend: USDT dominance has been forming lower highs, indicating a long-term downtrend, but with frequent bounces from the 3.75% area.
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📈 Interpretation:
When USDT dominance drops, it usually means money is flowing out of stablecoins into crypto assets like BTC, ETH, and altcoins — typically bullish for the market.
When USDT dominance rises, capital is moving into USDT — a bearish or risk-off signal (traders exiting into safety).
The chart currently shows rejection from the 5% area and moving down toward the 3.76% support.
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📊 What to Expect Next:
If USDT.D breaks below 3.76%: It could trigger a strong altcoin and BTC rally, as it would indicate capital rotation into riskier crypto assets.
If it bounces from 3.76% again: Market might consolidate or see a pullback in crypto prices.
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🧠 Trading Insight:
Watch this level closely:
Below 3.76% = bullish breakout (favorable for risk-on crypto trades).
Rebound at 3.76% = caution, potential crypto cooling or correction.