Cryptocurrency analysts used several chain metrics and indicators to analyze whether Bitcoin’s top is already in the middle of this bull run. This time, crypto analyst Thomas referred to the dominance of USDT to determine Bitcoin market at its peak.
How USDT Dominance Predicts Bitcoin’s Top
Thomas reported to X (formerly Twitter) fasting This USDT Dominance predicted every local Bitcoin top over the past six years. He noted that there was always a clear local top for Bitcoin every time USDT’s dominance touched bottom of the trend linewhich the analyst highlighted on the chart. Thomas added that anyone using this metric would have sold at the top every time in previous cycles.
Cryptocurrency analyst says it makes sense USDT Dominance can be used to predict the Bitcoin top, as the USDT-D trend in the longer term should be positive as the distribution of coins occurs over time. He added that USDT-D is essential because the market is regulated by swaps to and from stablecoins.
Meanwhile, Thomas mentioned that USDT dominance can also be applied in reverse and used to predict local bottom for Bitcoin. He noted that it has also been used to predict each local bottom for previous bear markets. The analyst admitted that USDT.D does not necessarily provide an precise estimate of the bottom, although he added that it “gives a good approximation.”
Local Top May Already Be On Bitcoin
Based on the chart shared by Thomas, Bitcoin’s local high may already be reached, as USDT.D has once again touched the trendline that the analyst referred to. When one of his followers asked him if this was the case and if Bitcoin was heading towards recent lows, Thomas he replied This was not necessarily going to happen as the market could retrace its steps and touch the lower end of the USDT.D chart, as it did in the last running of the bull.
The analyst is hopeful that this will happen because he said that he believes the market will retest the support line “several times in the coming months.” Ultimately, this would mean that Bitcoin has more room to grow in this market cycle before reaching a bull run peak. Other cryptocurrency analysts, such as Rekt Capitalhave already confirmed that the peak of the cycle has not yet arrived and that historical trends indicate that the market will peak next year.
Meanwhile, Thomas revealed that he will be using the USDT.D trendline to guide his long-term trades BTC/ETHI plan to buy when USDT dominance is at the top of the trendline and sell when it reaches the bottom.
At the time of writing, Bitcoin is trading at around $56,400, up more than 4% in the past 24 hours, according to data data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
