USDT+USDC dominance is approaching important support, the market is at a turning point.
The dominance of key stablecoins is preparing to test the EMA of the 50 day TF. The EMA 200 of the four-hour TF is at approximately the same level, so this is a combo of supports. Their test explains why, after momentum, the price of#BTCis now stalling.
There have already been several tests of the EMA 50 day TF in April and May and the dominance has rebounded, forcing volatile crypto assets to correct. If this time the support is broken, a pump may occur in the crypto market. Because there are no other moving averages below and the nearest important support is the global uptrend since June 2019. It is now at 5.68%. Next come volume levels and a couple of local trend levels.
If the dominance rebounds from the supports it came to, we should expect another trip to the resistances above, the main and closest of which are:
- EMA 50 monthly TF (currently 6.64%).
- Volume level 6.92%.
- EMA 200 daily TF (currently 6.99%).
- EMA 200 of the weekly TF (currently 7.10%).
All of these targets are within a descending, expanding wedge. This is a bullish figure for dominance, and even formed on the loys. But it is still difficult to imagine what can ensure the development of this figure. What events can so greatly increase the dominance of stablecoins, shake out players from positions in BTC and altcoins at the current stage of the market.
Our expectations are that if the dominance rebounds, it is unlikely to go above the first and second goals. If the dominance of#USDT+#USDCshows growth in the near future, then we expect it to continue the downward trend. And, as part of the crypto market bullrun, a breakdown of the global upward trend since June 2019. Invalidation of the descending expanding wedge.