The USDT dominance plays an important role in market navigation, whether on the higher time frames (HTFs) or the lower time frames (LTFs). Recently, it has been discussed that on the lower time frames, this index has been trading within a small range, with the highs and lows of the range tested multiple times. Recently, by testing the approximate 7.70% low of the range, we accurately identified the local top of the market. The index rose from this area until the diagonal trend line, which has served as both a rejection point and support for the index, having been tested four times. Re-testing the range high remains possible.

Looking ahead, I am watching for another re-test of the current range low, which could push the index higher. Currently, BTC shows bearish divergence on the 4-hour and 2-hour charts, while the index is approaching Monday’s low and showing bullish divergence. If these divergences play out, I expect the index to break through the trend line, potentially pushing it toward the range high and the monthly high $BTC MH(. Only if the range low is lost will the index trigger a strong downward move in the market, but the 70K-72K zone for BTC remains a strong resistance. )