Bitcoin is finding resistance around the $73k mark today, yet there's little reason for long-term concern. Pullbacks are healthy, after all, and the demand for BTC remains clear with a long lower wick on today’s candle, even as it faces overbought territory. Volume and On-Balance Volume (OBV) continue to look robust, and while RSI peaked at 79.30 yesterday, this aligns well with the current resistance level.
Looking at the 4-hour TBO Slow line, things remain optimistic, despite a recent cluster of late TBO Breakouts likely to signal some “late bloomers.” If BTC does pull back, the target for support is around $69,270. And with it being the last day of October, today’s push into a strong monthly close is setting a solid tone for November, though the start of the new month may see some initial price shifts.
The upcoming U.S. elections next week are likely to stir some volatility across all markets, which traders should keep in mind.
Stablecoin Dominance and BTC Dominance: Signs of Consolidation
Stablecoin dominance seems to have found a local bottom for now, with RSI making a slightly higher low, signaling potential consolidation. A significant drop in this metric is unlikely until BTC pushes firmly above $74k. Weekly stablecoin dominance sits below the TBO Cloud, showing a strong bearish signal, which is promising for BTC.
Bitcoin Dominance is back above 60% and continues to show strength. Although RSI made a slightly higher local high, it hasn’t yet surpassed the recent high of 81.98 from mid-October, meaning BTC dominance may have room for further gains.
Altcoins Facing Pressure as OTHERS Dominance Remains Bearish
Altcoins, meanwhile, are seeing a downturn. OTHERS.D is clinging to Daily TBO Support, but RSI has been oversold for five consecutive days, and the daily TBO Cloud continues to show a bearish setup. This signals caution for those trading ALTs, as Bitcoin season typically places more pressure on them during strong BTC rallies.
In contrast, the TOTAL crypto market cap has closed above long-term resistance, thanks to BTC’s recent strength. OTHERS, however, remains highly constrained, a reminder that while ALT trading offers volatility for gains, the current trend still favors Bitcoin.
TradFi & DXY: A Volatile Week Ahead
The U.S. Dollar Index (DXY) is beginning to show signs of deceleration near long-term resistance, with daily RSI cooling off gradually. The S&P 500 (SPX) is also weakening, though it hasn’t yet moved into bearish territory inside the daily TBO Cloud. Next week’s election results are likely to bring high volatility to traditional markets, and investors should prepare for potential swings regardless of the outcome.
The VIX, which measures market volatility, is displaying signs of bearish momentum as well, suggesting that any green closes could place it above the TBO Cloud, keeping market fluctuations on standby.
Summary
Bitcoin’s consolidation near $73k showcases its strong demand, with indicators aligning to support continued upside momentum in the medium term. However, traders should stay cautious with altcoins, as Bitcoin’s dominance is overshadowing them, and any further BTC gains may see alts continuing to struggle. TradFi markets brace for a volatile week with U.S. elections on the horizon, leaving Bitcoin to stand as a resilient asset in the current climate.
