Bitcoin closed up 2.38% yesterday, confirming its strength above the daily TBO Cloud. This signals a continuation of the bullish trend, reinforced by BTC piercing short-term overhead resistance. The failure of that resistance to hold suggests weakness at that level, opening the door for further upside. Daily RSI is recovering well, and if it closes above 60 today, it could provide a strong impulse to drive BTC higher. On-balance volume (OBV) remains strong, with its moving average still pointing upward, confirming a solid macro trend. The TBO Slow line is also holding its upward trajectory, further supporting the bullish case.
Bitcoin Short-Term Momentum and Resistance Levels
The 4-hour chart shows BTC gaining momentum, with a more visible break above resistance. RSI on this timeframe was extremely oversold just two days ago, which historically signals a short-term bottom. However, volume remains moderate—an upside breakout would require stronger participation from buyers. The key concern is Bitcoin Dominance (BTC.D), which has pushed higher, suggesting that while BTC remains strong, altcoins may continue to struggle in the short term.
Bitcoin Dominance Nears Key Resistance
BTC.D daily RSI has now made a new recent high. If RSI surpasses its previous peak of 80.74, it would signal further BTC outperformance and additional downside pressure for altcoins. Currently, BTC.D is overextended from the TBO Fast Line, meaning a pullback is expected soon. Price action also shows BTC.D reaching a local high, though not surpassing the November peak of 61.53%. The ideal scenario for altcoins would be BTC.D topping out and reversing downward.
Stablecoin Dominance Signals Market Stabilization
Stablecoin dominance retreated by 1.63% yesterday as BTC.D and OTHERS.D increased. While a new TBO Open Long signal is forming on the daily, it is too early to confirm. RSI has also pulled back below previously broken resistance, which is a positive sign. However, OBV’s moving average is still trending upward, suggesting lingering strength. For altcoins to gain momentum, two key conditions must be met: Bitcoin dominance must begin moving down, and stablecoin dominance must continue falling, ideally back to 5% or lower.
OTHERS.D Prepares for a Rebound
OTHERS.D finally got an RSI Reset today, which is a bullish reversal signal. A long-term overhead resistance level on daily RSI suggests that once broken, OTHERS.D could begin recovering rapidly. The likelihood remains high for a short-term correction bounce back to the TBO Fast Line, which has not been tested since January 18th.
Ethereum at a Potential Entry Zone
Despite its underwhelming performance, ETH is at a reasonable entry point from a risk-reward standpoint. Given the expectation of an upcoming altcoin bounce, ETH could see some upside momentum. While there are stronger opportunities elsewhere, ETH’s position cannot be ignored.
TOTAL Market Cap Holds Above Key Support
TOTAL crypto market cap is back above the daily TBO Cloud, reinforcing the overall bullish structure. RSI is looking strong, and OBV’s moving average is trending upward. The next key target for OTHERS is breaking above short-term resistance. A new resistance line has formed, meaning the OTHERS market cap will need to reclaim it to confirm further upside.
OTHERS Market Cap and RSI Resistance Fan Analysis
OTHERS market cap still looks strong despite recent selling pressure. The daily RSI indicator shows a well-defined support level holding firm, with a resistance fan outlining key breakout targets. The first RSI resistance level is at 50, which coincides with the OTHERS bullish pennant overhead resistance. Given the multiple pierces of resistance in this pennant, the most probable outcome remains an upside breakout, which could result in a 130% rally for altcoins.
NVDA and Gold Market Update
Nvidia (NVDA) is now below the daily TBO Cloud for the first time since December 2022, signaling a significant bearish shift. A weekly TBO Close Long signal is in progress, the first since 2022. This is a major warning sign for tech stocks.
Meanwhile, gold is approaching its local high of $2,790 but is showing hesitation in pushing higher. While the daily TBO Cloud remains bullish, RSI is beginning to weaken.
Altcoins Show Signs of Recovery
Solana’s 4-hour chart is printing TBT Bullish Divergence signals, indicating a potential bounce. SHIB’s price action suggests an upcoming rally, following an RSI Reset. TON appears ready to bounce as well, supported by OBV holding above its moving average. LINK remains one of the strongest altcoin charts, maintaining its bullish TBO Cloud structure and showing potential inclusion in the upcoming Digital Asset Reserve.
Oversold Altcoins and Key Bounce Candidates
SUI has been oversold for weeks but finally showed a bottoming signal with yesterday’s RSI Reset. TAO tested overhead resistance with a strong pump and is expected to attempt another breakout. WIF saw a major spike in volume yesterday, reinforcing its recent RSI Reset as a strong bottoming signal. RUNE presents a high-risk entry after retesting support, while MKR fell back to daily TBO Support, offering a potential re-entry opportunity. SDEX is also likely to complete an RSI Reset today, marking another attractive buying zone.
Final Thoughts on Market Conditions
While altcoins are finally showing signs of recovery, caution remains necessary until OTHERS breaks out of its bullish pennant. BTC dominance must reverse downward, and stablecoin dominance must continue its decline to confirm a broader market recovery. The current bounce is welcome, but traders should still protect profits and remain cautious until these key conditions are met.
