This is the weekly chart of USDT.D. The RSI is currently in the overbought zone. If the RSI starts to cool down, we may see a major drop, which could bring strong relief for altcoins.
USDT.D is trading around 6% and is near a key resistance level. If USDT.D drops, it is possible to move toward 5%, where there is a strong support zone. In my opinion, a rejection from this area of around 5% is possible.
In this scenario, strong fundamental coins like $SOL $ETH and $BNB are likely to perform better and move up faster.
Altcoin season may get some breathing room if this plays out.
Latest US economic data: Weekly initial jobless claims dropped to 214K (week ending Dec 20), better than expected and signaling low layoffs despite holiday volatility. Continuing claims at 1.92M. Also Q3 GDP surged to 4.3% annualized growth, driven by strong consumer spending. Labor market holding steady! $SOL
SOL is trading at a strong support zone. Historically, whenever SOL trades in this area, strong reversals have occurred. On the weekly chart, the RSI is in the oversold zone, which suggests a potential strong bounce from here. I am adding some SOL to my bag at these levels. $SOL
Christmas holidays have started. We know that liquidity remains low during these days, and market manipulation becomes easier because of low liquidity. About $107M in $BTC long positions were liquidated a while ago. We should stay away from leveraged trading. Downside liquidity for Bitcoin is almost finished, so a short-term reversal may happen from here. Let’s see what happens.