New Crypto Millionaires are almost ready to be born
A finfluencer said today on his Instagram reels: 'On the topic of Bitcoin dominance (
BTC.D
) I really dislike this metric. I don't think that is very relevant any more. The reason why I say is that because 1. it includes stable coins, which stable coins have an enourmous market cap and continue to grow as market matures. The issue with including all altcoins is that is very easy to create new ones that don't necessarily have any true value but they get included in the
BTC.D
calculation thus lowering it despite not actually making any major difference'.
I was curious and felt challenged. What I have found out was similar to Einstein's Eureka moment. The claim is that USDT market cap (
USDT
) plays a significant part in
BTC.D
but it gives an distorted image. I distracted
USDT
from
BTC.D
to see till what extent there is a relation by using their relative strengthness.
There is not much data and because it probably happens in every Bitcoin cycle only, next conclusions I can draw:
1. if
USDT
crosses up
BTC.D
and maybe as 2. condition at the same time BTC price crosses up EMA 21, you can start hodling;
2. as long as the
USDT
remain above
BTC.D
no need to panic as long as you are a day trader: every time BTC price close below EMA 21 you can take profit on your spot position and/or consider short and every time price close above EMA 21 you can buy spot and/or consider long position;
3. if
USDT
crosses down
BTC.D
you stop/continue hodling and/or consider a short position;
4. as long as the
USDT
remain below
BTC.D
and the BTC price hits EMA 21, consider this as to open short position;
5. if the
BTC.D
is decreasing below 50% level and the BTC price is increasing and remains above EMA 21 (see arrows): the best moments to create altcoin baskets.
Hopefully the history will repeat!
BTC.D
) I really dislike this metric. I don't think that is very relevant any more. The reason why I say is that because 1. it includes stable coins, which stable coins have an enourmous market cap and continue to grow as market matures. The issue with including all altcoins is that is very easy to create new ones that don't necessarily have any true value but they get included in the
BTC.D
calculation thus lowering it despite not actually making any major difference'. I was curious and felt challenged. What I have found out was similar to Einstein's Eureka moment. The claim is that USDT market cap (
USDT
) plays a significant part in
BTC.D
but it gives an distorted image. I distracted
USDT
from
BTC.D
to see till what extent there is a relation by using their relative strengthness. There is not much data and because it probably happens in every Bitcoin cycle only, next conclusions I can draw:
1. if
USDT
crosses up
BTC.D
and maybe as 2. condition at the same time BTC price crosses up EMA 21, you can start hodling; 2. as long as the
USDT
remain above
BTC.D
no need to panic as long as you are a day trader: every time BTC price close below EMA 21 you can take profit on your spot position and/or consider short and every time price close above EMA 21 you can buy spot and/or consider long position; 3. if
USDT
crosses down
BTC.D
you stop/continue hodling and/or consider a short position; 4. as long as the
USDT
remain below
BTC.D
and the BTC price hits EMA 21, consider this as to open short position; 5. if the
BTC.D
is decreasing below 50% level and the BTC price is increasing and remains above EMA 21 (see arrows): the best moments to create altcoin baskets. Hopefully the history will repeat!
Comment:
Maybe it was his Youtube shorts :-D
Comment:
Bars loaded do not show actual levels in the RSI graph. Especially this week USDT has crossed up several times BTC.D. Tonight there is a weekly close. If USDT manage to close higher than BTC.D, then this idea might become interesting!
Comment:
USDT crossed up BTC.D!!!