BTC had a strong daily close, pushing up over 2% and closing higher than yesterday’s open. Daily RSI closed above overhead resistance, and BTC is now approaching the daily TBO Fast Line. The 4-hour chart confirms that BTC continues to bounce off previously broken resistance, reaffirming it as strong support. The immediate target remains $98,478, but BTC must ultimately break through $100K to confirm the shift out of its downtrend.
ETH Leads the Market with Strong Performance
Ethereum was the standout performer yesterday, closing up 5%. Daily RSI pushed up to resistance and needs to continue climbing before the next pullback, which is expected around $3K.
ETH/BTC printed a TBT Bullish Divergence signal, which is usually a strong reversal indicator. However, given that ETH/BTC has printed multiple bullish divergence signals since 2022 without a sustained move higher, caution is warranted. While the weekly RSI looks promising, ETH/BTC remains in a bearish trend, and the daily TBO Slow Line is still pointing downward, meaning this signal alone isn’t enough to confirm a long-term reversal.
Stablecoin and BTC Dominance Trends Favor ALT Recovery
Stablecoin dominance fell 2.67% yesterday, signaling reduced fear in the market as investors rotate funds back into crypto. The 4-hour chart suggests stablecoin dominance will continue to decline over the coming weeks, which is crucial for sustaining the ALT market recovery.
Bitcoin dominance (BTC.D) has been retracing over the past three days, and daily RSI has broken its support line. The next major support for BTC.D is around 58.6%, but it will take weeks to reach that level. This downtrend in BTC.D is good for ALTs, as it signals capital rotation away from Bitcoin.
Top 10 and OTHERS Dominance Show Strong Recovery
Top 10 Dominance has surged over the past three days, returning to the daily TBO Fast Line. This move was first signaled by a TBT Bullish Reversal indicator last Friday and a cluster of TBO Close Shorts on Sunday. These signals have consistently marked key market reversals, and a similar setup for BTC and ETH would confirm a broader market recovery.
OTHERS Dominance (OTHERS.D) is finally showing signs of life, printing a TBT Bullish Divergence signal on the daily timeframe. Unlike ETH/BTC, this is a more reliable signal because the daily TBO Slow Line is flat rather than trending downward. The trend direction significantly impacts how divergence signals are interpreted—when the trend is down, bullish divergence signals are less reliable. OTHERS.D has also seen a strong push in daily RSI, reinforcing the idea that ALTs are beginning to recover from their deeply oversold conditions.
OTHERS Market Cap and Volume Trends Support Bullish Case
OTHERS market cap remains in a bullish pennant, and daily RSI has broken above the first resistance level of its current RSI resistance fan. OBV is still bearishly oversold but is beginning to move toward previously broken support, which is now acting as resistance. While trading volume for OTHERS has been low since late January, it is expected to increase in the coming weeks as ALT prices rebound.
BVOL7D Signals Continued ALT Recovery
BVOL7D has dropped to 5.99, an encouraging sign. The longer BVOL7D declines, the more room ALTs have to recover. Historically, a falling BVOL7D correlates with stronger ALT rallies, which aligns with the recent bounce in OTHERS Dominance and the broader market.
ALT Market Heating Up as Recovery Gains Momentum
SOL’s 4-hour chart remains stagnant despite multiple bullish signals, including a TBT Bullish Divergence cluster and a TBO Close Short. However, BNB broke above mid-term resistance, confirming a strong recovery. SHIB printed a TBT Bullish Divergence and pierced the first resistance fan line, while SUI is pushing above overhead resistance.
NEAR has held support at the 0.382 Fib level but has yet to break higher. Given the strong bullish divergence cluster on the 4-hour chart, a move higher is expected. LTC continues its upward trend, but daily RSI is entering overbought territory.
POPCAT surged 8% in a single 4-hour candle, making an impressive reversal move. MKR printed a second TBT Bullish Divergence on the daily, but the daily TBO Slow Line is still angled downward, tempering enthusiasm for immediate upside. Meanwhile, NEIRO on ETH printed a TBT Bullish Divergence and closed up 30%, with an RSI Reset confirming its oversold status.
Final Thoughts and Strategy Moving Forward
BTC is making significant progress toward breaking key resistance levels, and ETH is showing strong signs of a potential short squeeze. ALT dominance is recovering, stablecoin dominance is falling, and BVOL7D is trending lower—all key indicators of a sustained market bounce. However, resistance levels remain, and traders should be cautious while taking profits on the way up.
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