USDT.D - Time to Pile Into Cash?Market Cap USDT Dominance, %CRYPTOCAP:USDT.DVIAQUANTWith my recent analysis of Bitcoin and the total cryptocurrency market cap, I thought it would also be important to examine USDT dominance to see if the bearish hypothesis aligns with an increase in USDT dominance. To see those related ideas for BTC and TOTAL view them here: USDT is the largest stablecoin by market cap and the third largest cryptocurrency by market cap overall. Understanding USDT's role in the cryptocurrency market is important as it helps gauge when market participants are moving into cash and holding USDT, versus when they are going risk-on and deploying their cash back into the cryptocurrency market. Currently USDT dominance sits at approximately 7.5%, meaning USDT represents 7.5% of the entire cryptocurrency market cap. Now let's examine the USDT.D metrics to see if the technicals align with or negate the broader bearish thesis. The first thing to notice is the structure. Price is forming a clear bull flag, which should indicate that USDT dominance is set to increase. This would likely be caused by the market dropping and investors rushing out of risk assets and into cash/USDT. I have drawn this as a parallel channel as it does the pattern more justice. A series of highs at the top (red circles) of the channel and a series of lows at the bottom (green circles), with the midline also seeing significant price confluence. Currently USDT.D is battling that midline or "heartline." If USDT.D is able to break above it, that is when the broader market will start dropping more rapidly and the market cap of USDT will begin to rise. If this breakout occurs, the measured move would put USDT dominance around 10.25% to 10.5% depending on when the breakout of the flag occurs. This also aligns with the 1.618 extension level of the current USDT.D Fibonacci trend. The next thing to examine is the MACD cross on the daily chart. I have outlined with a solid green vertical line every time the MACD has crossed to the upside. For the most part, USDT has seen a pretty significant shift in market cap dominance following each of these crosses. The MACD has just crossed again, suggesting market cap is set to increase while the rest of the cryptocurrency market could be on the verge of a decrease. I also want to highlight the Fear and Greed index I have been using on this USDT.D chart. When the indicator is flashing greed (green bars) it shows investor sentiment shifting toward cash and USDT positions as the market decreases. When the indicator is flashing fear (red bars) it shows investor sentiment shifting toward FOMO as market participants rush out of cash and USDT and back into cryptocurrencies. What is interesting is that every time we see the MACD cross to the upside we also typically see a period of greed, with investors rushing out of the market and into USDT. This all aligns with my broader theory of BTC creating its next lower high and investors beginning to exit the cryptocurrency market and reposition themselves in cash and USDT. For the time being, watch the heartline of the parallel channel closely for signs of a breakout.