Cryptocurrency analysts have used multiple metrics on chain and indicators to analyze whether Bitcoin’s top is already in this bull run or not. This time, crypto analyst Thomas hinted at USDT dominance to determine Bitcoin Market Peak.
How USDT Dominance Predicts Bitcoin Top
Thomas stated in an X (formerly Twitter) job that USDT Domination predicted every local Bitcoin top for the past six years. He noted that there has always been a clear local top for Bitcoin every time USDT dominance hits the bottom of a trend linethat the analyst highlighted on the chart. Thomas added that anyone who used that metric would have sold the top every time in previous cycles.
The crypto analyst said it makes sense that USDT Dominance can be used to predict the Bitcoin top since the trend of USDT-D over a longer period should be positive as the distribution of coins occurs over time. He added that USDT-D is important because the market is driven by the inflow and outflow of stablecoins.
Meanwhile, Thomas mentioned that USDT dominance can also be applied inversely and used to predict the local fund for bitcoinHe noted that USDT.D was also used to predict every local bottom in previous bear markets. The analyst admitted that USDT.D doesn’t necessarily give an accurate estimate of the bottom, though he added that it “gives a good estimate.”
Local Top Might Already Be Interested in Bitcoin
According to the chart shared by Thomas, Bitcoin’s local top may have already been reached, given that USDT.D has once again touched the trendline the analyst was referring to. Asked by one of his followers if this was the case and if Bitcoin was heading towards new lows, Thomas replied This was not necessarily what was going to happen, as the market can rally and reach the lower end of the USDT.D chart, as it did in the last bull run.
The analyst is optimistic that this will happen, as he said that he believes the market will retest the support line “multiple times over the next few months.” This would ultimately mean that Bitcoin has more room to run in this market cycle before reaching its peak upside. Other crypto analysts, like Rekt Capitalhave already stated that the cycle peak has not yet been reached and that historical trends suggest that the market top will occur next year.
Meanwhile, Thomas revealed that he would use the USDT.D trendline to guide his long-term trades in Bitcoin/ETHHe plans 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 from CoinMarketCap.
Featured image created with Dall.E, chart by Tradingview.com
