Bitcoin's recent pullback, following an incredible 18-day streak of overbought daily RSI, has surprised many in the crypto market—not for its occurrence but for its modest scale and its impact on altcoins. While Bitcoin saw a slight retreat from its all-time high above $99,000, several top altcoins closed the day in green, bucking the usual trend of sharp declines following Bitcoin pullbacks.
A Unique Pullback: Weak Volume and Diverging Trends
Despite Bitcoin’s roughly 5% pullback, trading volume remains unusually low, with only $142 million in leveraged longs liquidated over a four-hour window—a far cry from the volume typically associated with major corrections. This lack of significant liquidation suggests that the market is not yet ready for a deeper pullback. Bitcoin continues to show strength, with the daily TBO Slow line angling upward and the overall trend remaining bullish on all major time frames.
Interestingly, Ethereum and other major altcoins closed in the green during Bitcoin’s decline. ETH dominance surged 5.67%, while Bitcoin dominance slipped 1.21%, marking a rare divergence. Stablecoin dominance showed only a modest increase, leaving market participants puzzled by this divergence from typical behavior.
Key Support Levels to Watch
Bitcoin’s current pullback has brought its price back inside the 4-hour TBO Cloud, indicating a period of consolidation. On the daily time frame, Bitcoin remains above the TBO Fast line near $89,000, which has historically acted as a reliable support level during pullbacks.
Further potential support levels lie at:
- $94,357 (recent Fibonacci resistance-turned-support),
- $89,000 (TBO Fast line),
- $82,226 (Fibonacci level),
- $78,000 (the open CME Gap), and
- $75,000 and $70,000 (long-term support levels).
While these levels seem distant, the market’s unpredictable nature requires traders to remain vigilant and prepared for all scenarios.
Altcoin Insights: The Multiple Factor Effect in Action
Bitcoin's modest pullback had a varied impact across the altcoin market. The “Multiple Factor Effect,” where altcoins react more dramatically to Bitcoin’s movements, was evident as several coins experienced sharper declines:
Solana dropped nearly 10%.
Dogecoin saw a 13% decline.
Cardano fell 14%.
However, some altcoins like UNI defied the trend, closing in green and even hitting profit targets for some traders. This mixed performance underscores the importance of monitoring individual altcoin setups rather than relying solely on Bitcoin’s direction.
The Rise of TBO Springboard Setups
As Bitcoin consolidates, TBO Springboard setups are emerging across the market. These setups occur when prices bounce off the daily TBO Fast line after becoming overextended. Examples include:
SUI executing a successful bounce.
PEPE nearing a similar setup.
LTC completing one last week.
Such setups are hallmark opportunities during bullish trends, offering traders a chance to capitalize on the ongoing momentum while managing risk effectively.
Outlook: A Pause Before the Next Leg Higher
While Bitcoin’s pullback has raised questions, the broader trend remains bullish. This consolidation phase is likely to be temporary, with Bitcoin potentially ranging sideways while altcoins attempt to retrace higher. The market continues to exhibit strong momentum, and the presence of bullish setups across the board suggests further gains ahead for both Bitcoin and altcoins.
For traders, this is a time to remain strategic: monitor key support levels, capitalize on TBO Springboard setups, and be prepared to buy the dip. As the broader crypto market gears up for the next phase of its rally, patience and discipline will be key to navigating the volatility.
