Cryptocurrency investment strategy under the change of USDT and BTC market share
USDT.D market share has many lower shadows on the weekly chart, and BTC fluctuates in the range, indicating that some cryptocurrencies have fallen more than BTC. When BTC fluctuates at a high level, the increase in USDT market share is a blood-sucking behavior, which can make BTC reach a new high at a small level. This explains that although USDT market share has a high low point, the price exceeds the high point at the beginning of the year, because a large number of altcoins, value coins and VC coins have fallen but not risen in the past six months to provide blood transfusions for BTC. From the perspective of the total market value of cryptocurrencies, it is possible to reach the top, and more of the market value is transferred to each other.
BTC dominance is on an upward trend, and blood sucking is still going on. The 60% BTC dominance may rise to 70% when the USDT dominance fluctuates or rebounds.
I don’t think the price of altcoins is at a recent high, and I will continue to wait: First, see if the USDT dominance falls below the trend line (if it falls below, it means that liquidity is enhanced)
Second, see if the BTC dominance breaks through the Fibonacci pressure range of 0.618 - 0.66. If the former is realized, cryptocurrencies may rise generally; if the latter is realized, BTC prices will fall but market share will increase to about 70%, and altcoins will fall further.
If the former occurs first, altcoins can be bought at the bottom; if the latter occurs first, the decline of altcoins in USD standard is equal to the BTC correction plus the increase in BTC dominance rate (for example, BTC pulls back 20% from 90,000 to 72,000, if BTC dominance rate rises to 70%, altcoins may fall at least 30%).
Considering the uncertainty of the two conditions, it is a wise choice to hold BTC at present and decide whether to build a position in altcoins based on the situation. After all, if altcoins are discounted again, they may reach the price of the last bear market, and the income will increase by an order of magnitude.
