Bitcoin has once again demonstrated resilience, finding support at the familiar Fibonacci levels it has tested since March 2024. While Bitcoin’s daily candles managed to stay above the critical 3.0 Fibonacci extension from 2014 which currently serves as support, today’s close within the daily TBO Cloud suggests further bearish consolidation could be in the cards. Given that today marks Election Day in the U.S., traders can expect heightened volatility for BTC and the wider crypto market this week.
If Bitcoin does take a dip, primary support levels to watch are around $64,550 and $60,000. While a downturn is possible, the bullish target remains the recent all-time high of $73,794. In the event of a bullish push, BTC could aim as high as $77,000 due to short-seller positioning near $73,600. A potential short squeeze could send prices soaring, triggering forced buy-ins from liquidated positions and creating upward momentum.
Stablecoin and Bitcoin Dominance Remain Strong
Stablecoin dominance is hitting resistance once again, hinting at a potential decline if BTC rallies. However, a downturn in Bitcoin would likely drive this metric higher, with a rapid return to the 6.44% range if BTC manages another bullish run.
Bitcoin dominance, on the other hand, remains in high territory. Daily RSI has been overbought for an impressive eight-day streak, while the weekly chart maintains a strong bullish stance. While there’s room for a minor pullback, any significant reversal of Bitcoin dominance appears unlikely in the near term.
Altcoins and Meme Coins in the Spotlight Amid Oversold Signals
Altcoin dominance (OTHERS.D) has endured an extended period of oversold conditions, now on day eleven. A slight recovery seems to be underway, with a green candle hinting at a possible close today, though the broader trend remains bearish. The TOTAL crypto market cap chart printed a TBO Close Long alert, signaling caution as it sits within the TBO Cloud, reflecting market indecision.
Several altcoins and meme coins are seeing robust gains, with notable performers including MOG, up 10%, MEW at 7%, POPCAT at 8%, BONK at 5%, and DOGE climbing 7%. Those following the November watchlist video would not be surprised by these meme coin moves, as they tend to amplify both rallies and pullbacks in a way that is characteristic of their high volatility.
The TradFi Picture: Anticipating a Volatile Week
In traditional markets, the DXY continues to hover above the daily TBO Cloud. The falling RSI indicates waning strength as resistance holds firm. Other major indices like the Nasdaq ($NDX) have extended the bearish sentiment from late last week, potentially adding volatility with the upcoming Federal Reserve meeting.
With elections and major financial events on the horizon, traders may be wise to hold off on new positions until the dust settles. Bitcoin’s key support levels remain firm for now, with possible resistance at $73,794. In the meantime, altcoins and meme coins are showing movement but should be approached with caution as market uncertainty unfolds.
