The market remains within a small range, but from a broader perspective, the dominance of USDT is still below the resistance level of 8.20% to 8.80%. Last week, this index was rejected at this level. Any higher timeframe(HTF) divergence pattern in this area increases the likelihood that it will not break through and enter price discovery, thereby supporting a short-term market rebound. This is also the zone we use to gradually increase our holdings of BTC and ETH.

Overall, this index is now trading within a large macro range, from our upper green box to the lower green box at 6.70%, with an intermediate range around 7.30%. Any retest of the lower green box would be an excellent opportunity to fully close our spot positions and at least short to retest the highs. Accepting above 8.80% would lead the index to new highs, similar to what we saw in 2022.
In this case, given the lack of previous data to help identify the next resistance zone, we will look for macro divergence to help us predict the index's top, i.e., the market's bottom. In 2022, the index reached a top during a 2-week bearish divergence, while BTC simultaneously showed a 2-week bullish divergence. I expect a similar situation to occur this year. #CPI数据将公布