This chart compares Bitcoin (BTC/USD) and Bitcoin/USDT dominance, where USDT dominance often represents an inverse indicator of Bitcoin's strength.
Key Insights:
In 2021, we observed a clear bearish divergence: Bitcoin was rising while USDT dominance formed a higher peak, indicating the top.
Historically, bullish divergences in USDT.D correspond with Bitcoin bottoms.
Currently, Bitcoin is testing a key resistance trend line from previous peaks (2021 and March 2024).
If Bitcoin rises alongside USDT dominance, this is a strong exit signal.
However, if $BTC breaks the resistance level and USDT.D declines, expect a strong rally.
Conclusion:
Watch for divergence. USDT dominance trends can indicate significant movements in #BTC before they happen.