This section is a potential Long trap.
Don't rush to Long just because BTC is still in the green. The USDT dominance is showing signs of strengthening, while BTC on the H4 chart is starting to weaken.
One side is looking to defend, while BTC is at risk of forming a peak divergence.
This is a section that can easily lead many to become complacent.
Looking at BTC still being high, still green, it gives off a sense of 'it's all good'.
But below, risk signals are beginning to emerge.
On Dom U H4, there is now a sign of bullish divergence.
Dom U represents USDT dominance.
When Dom U increases, it often simply means that funds are trending towards USDT more, indicating that money is becoming more defensive.
When money starts to defend, I won't be keen on Longing BTC on smaller time frames like H1 or M15 anymore.
Because at that point, short-term Longs are very prone to noise, easily swept, and you can get into a position only to see the market pull back against you.
So for me, in this section, the more reasonable position is:
—> stand aside and observe first.
No need to force a trade.
The points I'm looking at are:
- Dom U has bullish divergence.
- BTC H4 is showing peak divergence.
USDT is showing signs of strengthening, while BTC is showing signs of weakening upward momentum.
When these two things happen together, it's not a pretty context to be excited about going Long.
The important mark I'm watching is 79k.
If BTC breaks below the 79k range, then the H4 peak divergence could be confirmed more clearly.
At that point, the probability of BTC dropping to the low 60s will increase.
I emphasize that the probability increases, it's not 100% guaranteed.
Because the market always needs confirmation, you shouldn't jump in based on emotions and guesses.
On the D1 chart, BTC is also at a very sensitive area.
The price is about to touch the 200-day MA — the green line on the chart.
This is a significant resistance.
$BTC #btcusdt