🦉 Bitcoin Coinbase Premium Sees Red Plunge

OWLGO’S NEWS NEST
3 TRENDING HEADLINES 💡

DEGEN PLAYS
GAINERS & NEWBIES 👀

MAC’S VEVE & NFT
DISNEY BAMBI DROP 🦌

DK’S CHART OF THE DAY
USDT DOMINANCE 1 WEEK 🔬

Market Update: Bitcoin and Cryptocurrency Outlook- 

In recent days, the broader markets have reacted negatively to Jerome Powell's comments and the anticipated future direction of monetary policy.

However, these shifts should not come as a surprise, as the warning signs have been apparent in the charts for some time. Among the most crucial indicators to monitor right now, alongside Bitcoin, is the Tether Dominance chart (USDT.D).

Tether Dominance provides a clear picture of the market's risk sentiment. To put it simply, when market participants are entering the cryptocurrency space, they often exchange their Tether for various cryptocurrencies, causing Tether Dominance to decrease and the cryptocurrency market to rise. 

Conversely, when there is a "flight to safety," investors tend to sell their cryptocurrency holdings and return to Tether, causing Tether Dominance to rise while the broader cryptocurrency market declines.

Thus, Tether Dominance and the overall cryptocurrency market typically move inversely to each other.

In recent days, we've observed a significant rise in Tether Dominance and a corresponding decline in the overall cryptocurrency markets.

This suggests that a large number of market participants are selling off their crypto holdings and seeking refuge in Tether. This shift in sentiment is a crucial warning signal.

The Tether Dominance chart also features an important long-term upward trend line that has served as a critical support and resistance level since 2017.

This trend line has marked both local and macro tops in the past. Recently, the market broke below this trend line, signaling a potential shift toward bullish behavior for Bitcoin and the broader crypto space, as we witnessed significant gains.

However, in the past few days, we’ve seen a break back above this trend line, specifically at the 4.2% level, which has dealt a significant blow to the cryptocurrency market.

If Tether Dominance continues to rise, it suggests that the cryptocurrency market could experience further price declines or a prolonged period of consolidation.

For the market to regain bullish momentum, we would need to see Tether Dominance break back below the upward trend line, with daily closes below the 4.2% level and ultimately a drop below the 3.7% mark.

Only then would we expect potential acceleration to the upside for the cryptocurrency space.

This chart should be closely monitored for early indications of where the crypto market is likely headed.

The next few days and weeks will be critical in determining whether the current trend persists.

Proceed with caution and stay vigilant.

https://www.tradingview.com/x/uGRfRnRo/

Follow @DK5150 on X

OWL’S EYE VIEW
CRYPTO VIDEO SPOTLIGHT - THIS BULLRUN SOMETHING’S DIFFERENT  🔦

T’S HOOT’S OF ENLIGHTENMENT
A TEMPORARY SETBACK 💡

Stocks and crypto markets have been running hard since the Nov 5th Presidential election. We’ve been talking about a bigger pullback, a possible 30% correction, and it finally materialized due to the Fed’s hawkish stance on fewer rate cuts in 2025, negating what they said in September. 

Fed Chair Jerome Powell went on to say the Fed can’t hold Bitcoin in reserve, but this law can be changed by Congress. He also spoke with a little disdain about Trump’s tariff initiative. This coupled with technicals showing some local topping signals and BTC dominance stopping the Alt Coin Season party caused a temporary meltdown.   

I’ve mentioned my concern about the Fed not being honest with the public about the economy many times this year to our SLACK group. 

I wrote about inflation going up last week in here the newsletter and warned of a pullback on Wednesday.  

While everyone was really excited seeing so much green, I’ve been cautiously optimistic about the immediate future.

Overall, I’m bullish as we are entering the final year of this 4-year financial cycle with Bitcoin surpassing 100k, and holding for the most part. 

I still believe we are going to get an incredible Bull Run in 2025, tons of bullish news and catalysts with a new pro-crypto administration in the US and many countries around the world following suit.  

The markets have just been reacting to the no immediate pivot from Fed and the money printer not going back on yet sentiment. 

So Alts may be taking a breather for the next couple weeks. Just be calm. Don’t let the man shake you out, lol. DCA when you can. Enjoy your holidays.

The last month and a half was a taste of Alt Coin Season.

Face Melting returns will happen when it’s time! 

Want to learn more? Join us today… www.dailygainscrypto.com 

OWLGO’S HOOT BUZZ
OWLGO’S HOT X POST 🚀

cointelegraph

View more on Instagram

obathegreat

View more on Instagram

OWLGO’S LOLS
DAILY MEMES 🤣