Is the USDT Dominance Surge Signaling a Crypto Market Reversal?
The post Is the USDT Dominance Surge Signaling a Crypto Market Reversal? appeared on BitcoinEthereumNews.com.
In recent months, the USDT Dominance (USDT.D) index has experienced a rapid rise. A 20% increase in October suggests investors moved funds out of risky assets and into “haven” stablecoins. However, as the index approaches a long-term resistance level, a key question arises: Is this a sign of an impending market correction—or the beginning of a new bullish cycle for Bitcoin and Altcoins? Sponsored Sponsored USDT.D Hits Resistance: A Crucial Turning Point for the Market According to data shared on X, USDT Dominance (USDT.D) has steadily increased for the past six months. It recently hit a short-term peak and is approaching a long-term descending trendline, a resistance zone that has historically capped USDT.D rallies. USDT.D chart. Source: TradingView Technical analysts are split into two sides. One believes that USDT.D could face a strong rejection at this resistance, similar to previous instances that coincided with Bitcoin (BTC) price bottoms and subsequent recoveries, such as the FTX crisis in 2022. Conversely, if the index breaks above this resistance, the next primary target could be around 6.5%, signaling further capital outflows from risk assets and potentially deeper price declines in crypto. USDT.D chart. Source: X Another noteworthy pattern is the bearish head-and-shoulders formation emerging on the 4-hour chart. If confirmed, USDT.D could rally to 5.7% before correcting, suggesting that the upcoming market phase may be marked by heightened volatility and a war between fear and optimism. Sponsored Sponsored USDT Dominance 4H chart. Source: X Based on the overall technical picture, there’s a strong chance that USDT.D could experience a short-term rejection at the resistance level, providing temporary relief for the altcoin market before the market establishes a more defined medium-term trend. This short-term pullback could serve as a healthy pause, allowing risk appetite to recover briefly before the next move. Implications for Bitcoin…
Filed under: News - @ November 5, 2025 10:27 am