From TradingView · · 1m 20s
Tether dominance signals more crypto selloff ahead
After the CLARITY Act failed, stablecoin flows suggest traders are moving back into cash and Bitcoin could drop below $70,000.
In brief
After the CLARITY Act failed, stablecoin flows suggest traders are moving back into cash and Bitcoin could drop below $70,000. Tether dominance breaking above its channel suggests continued conversion from crypto to cash, potentially pushing Bitcoin below $70,000. Originally reported by TradingView.
CLARITY Act failure spooks markets
The Senate rejected the CLARITY Act, bringing uncertainty back to crypto. Traders are watching Tether dominance as a key signal for where money flows next.
Tether dominance tracks market fear
USDT.D measures what percentage of crypto market cap sits in Tether stablecoins. When it rises, traders are converting crypto back into cash.
Key channel broken to upside
On September 9, Tether dominance broke decisively above a parallel channel tracked since April. It's now using that upper boundary as a launchpad higher.
“Dominance decisively broke out back above the channel, and for the past week USDT.D has used the upper boundary as a launching point.”
Target points to Bitcoin pain
The breakout suggests USDT.D will climb toward 8.15% to 8.25%. That would likely push Bitcoin below $70,000 as traders pile into stablecoins.
Old resistance now supports rally
Recent lows formed at November 2021 resistance around 6.75%, which has flipped to support. The MACD indicator also shows strong momentum building.
FOMC decision adds volatility risk
The Federal Reserve's rate decision is imminent, which could amplify the move. Traders should prepare for significant price swings across crypto markets.
“The FOMC decision is tomorrow, so brace for significant volatility.”
The main idea
Tether dominance breaking above its channel suggests continued conversion from crypto to cash, potentially pushing Bitcoin below $70,000.
