Financial Insights That Matter
Bitcoin is maintaining its bullish structure after closing inside the daily TBO Cloud on Sunday and successfully holding inside of it for the past two days. This is a critical development that traders have been waiting on for weeks.
Daily RSI tested overhead resistance after yesterday’s bullish close, signaling continued strength. While volume didn’t quite meet the 30-day moving average, it was significantly higher than recent levels, leading to an OBV breakout above its moving average. This is a strong sign that BTC’s trend is shifting.
One concern is the newly opened CME Gap at $84,865, which historically has a high probability of filling. It would be healthier for BTC to close this gap sooner rather than later to remove potential downside risk.
The first resistance fan line has been successfully breached, and the next target sits just below $90,000. This remains the next key level to watch in BTC’s climb toward full recovery.
Ethereum Breaks Inside the TBO Cloud for the First Time Since February
Ethereum finally closed inside its daily TBO Cloud, marking its first return to this zone since February 24. This is a significant technical event that aligns with improving strength indicators across the board.
ETH still has three open CME Gaps, with the nearest at $2,623, suggesting that short-term volatility remains a factor. However, momentum is shifting in ETH’s favor.
Daily RSI reached a new local high at 61.17, confirming increased buying pressure. OBV also crossed bullishly above its moving average, though volume remains below its 30-day average. While ETH/BTC remains in a long-term bearish trend, these signals hint that ETH could be at a generational entry point—if it holds.
Stablecoin Dominance Consolidates Bearishly, Signaling Market Strength
Stablecoin dominance is chop-solidating inside the daily TBO Cloud, further reinforcing expectations that it will continue its downward trend. A break below the cloud would indicate a stronger bullish trend for crypto.
The first major support line has already been broken, and bearish consolidation is now likely. This aligns with a broader thesis of capital rotating back into crypto assets. The weekly RSI closing below 70 is another key development, signaling a weakening bullish trend in stablecoin dominance—exactly what traders want to see.
Bitcoin Dominance Stalling at Resistance, OTHERS.D Breaks Out
Bitcoin dominance continues to hover just below TBO Resistance at 61.58%. A breakdown into the daily TBO Cloud would be the first step toward an altcoin rally.
Top 10 Dominance remains stable above the TBO Cloud, and RSI is still well below overbought levels, suggesting that this uptrend has more room to run.
The biggest development comes from OTHERS.D, which finally broke above long-standing overhead resistance. This is a breakout months in the making and could be the catalyst for mid- and low-cap altcoins to outperform.
On the weekly timeframe, OTHERS.D is starting to show upward movement, though significant TBO Resistance remains at 8.68%. Once this level is broken and held, the next target would be 11% dominance over the coming weeks.
TOTAL Market Cap Grows as Crypto Strengthens
The TOTAL crypto market cap is steadily pushing inside the daily TBO Cloud, reinforcing a bullish shift in momentum. It has also broken above its first resistance fan line, an early confirmation of a sustainable recovery.
TOTAL3, which represents the market cap excluding BTC and ETH, is also looking strong. However, the real focus remains on OTHERS, which has everything setting up for a continued rally.
BVOL7D at Historic Lows Suggests Short-Term Caution
BVOL7D daily RSI has dropped to 8.00, the lowest reading since April 2023. Interestingly, it has yet to reach the Bounce Zone, suggesting that Bitcoin may remain in a low-volatility phase for a little longer before the next significant move.
This aligns with the likelihood of BTC making a short pullback, especially with the open CME Gap still unfilled. Traders should brace for some minor turbulence, but the overall trend remains bullish.
Bitcoin Expected to Outperform Gold in the Coming Months
PAXG/BTC has fallen inside the daily TBO Cloud, signaling bearish consolidation. Historically, when this occurs, Gold tends to underperform Bitcoin for months at a time.
This follows a previously identified TBT Bearish Divergence Cluster on PAXG/BTC’s daily chart, mirroring the conditions seen before BTC outperformed Gold in past cycles.
Altcoin Market Heating Up as Breakouts Begin
BNB is testing overhead resistance and looks primed for a breakout toward $650 in the coming days.
Solana closed above resistance yesterday and is holding inside the daily TBO Cloud. RSI is approaching overbought territory but remains below 70, suggesting further upside is likely. OBV is also starting to trend upward, confirming growing strength.
ADA is trading between $0.69 and $0.75, showing signs of accumulation. RSI is gradually moving higher, supporting the likelihood of a breakout.
TradFi Signals Align with a Broader Market Recovery
While many altcoins are still in the early stages of breaking out, patience remains key. The increasing number of bullish reversal signals across the market confirms that the broader trend is shifting.
Despite short-term concerns over BTC’s CME Gap and BVOL7D conditions, the altcoin market is showing real signs of life, and continued bullish momentum is expected.
For those looking to capitalize on this recovery, The Complete Cryptocurrency Investor at Mastering Assets provides the knowledge and tools needed to navigate market cycles with confidence.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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