Bitcoin took another hit over the weekend, dropping 6% on Sunday, likely in response to tariff threats from Canada, though at this point, the exact catalyst remains uncertain. The Stop-Loss Hunting Alert provided advance warning that conditions were deteriorating, highlighting yet again how liquidity-driven moves on weekends continue to impact BTC price action.
One of the more frustrating aspects of this Sunday dump is the creation of another CME Gap, this time at $84,790. Historically, CME Gaps tend to be filled quickly, and this one could be an easy target for BTC to reclaim today.
Adding to the bearish tone, TBO Support has dropped from $85,050 to $80,037, indicating a weaker support structure overall. There is clear 4-hour support for a bounce, but momentum remains uncertain. While 4-hour RSI printed a slightly higher low, OBV continues trending lower, signaling underlying bearish pressure that has yet to subside.
Ethereum Struggles to Hold Key Support Amid Market Weakness
Ethereum is also under pressure, with a new CME Gap forming at $2,110 following the latest decline. ETH managed to hold above TBO Support at $1,995, but more concerning is the fact that it dropped below the critical $2,150 level, which had been acting as a key price floor.
The weekly chart presents a more alarming signal. Last week, weekly RSI closed below 25, a bearish continuation signal that historically leads to further downside. While the current weekly candle has bounced slightly, it's still far too early to confirm a reversal. The one thing that remains clear is that ETH is deeply oversold, and any further weakness could create long-term accumulation opportunities.
Stablecoin and Bitcoin Dominance Levels Show Mixed Signals
Stablecoin dominance rose slightly to 7.77% yesterday, but today's newly forming daily candle is showing a TBT Bearish Divergence Cluster, a potential sign that stablecoin demand is peaking.
More notably, stablecoin dominance RSI pushed above 70, but failed to exceed the previous high of 86.95. This hidden bearish divergence suggests that stablecoin dominance could begin declining soon, which would be a bullish signal for BTC and altcoins.
Meanwhile, Bitcoin Dominance remains stuck at TBO Resistance (61.58%), unable to break through. Top 10 Dominance closed below the daily TBO Cloud, confirming bearish structure, though today's price action is attempting to form a slightly higher low.
Among dominance charts, OTHERS.D is the most interesting, as it fell back to previously broken resistance but is still holding weak bullish structure. If OTHERS.D can maintain its footing, mid- to low-cap altcoins could see relief in the short term.
BVOL7D Holds Steady Despite Bitcoin’s Drop
One of the most surprising observations is that BVOL7D did not spike higher during Sunday’s BTC dump. In fact, it closed slightly red and remains near 12, indicating that volatility is holding steady rather than accelerating further.
This reinforces the expectation that BVOL7D should begin dropping soon, which historically signals a short-term window for altcoins to recover. However, until Bitcoin regains strength, altcoin rallies will likely be short-lived.
Altcoins at Key Support Levels
Despite the market-wide weakness, several altcoins are now sitting at key support levels, presenting potential opportunities for long-term accumulation.
Solana (SOL) is holding at TBO Support on the daily, making this an optimal entry level if broader market conditions stabilize.
XRP has retreated to TBO Support, while Cardano (ADA) saw a major 30% pullback after testing resistance last week. The rejection at overhead resistance confirms the importance of watching volume levels closely to gauge strength in recovery attempts.
Litecoin (LTC) is now oversold on daily RSI for the first time since August 2024, making it an interesting potential reversal candidate.
Additionally, S (previously FTM) has reached an ideal entry point at TBO Support, coupled with an RSI Reset, making it one of the more attractive setups in the current environment.
One of the more unexpected outliers is ACT, which continues to hold its ground while the rest of the market declines. While the reasons behind this resilience remain unclear, its ability to sustain price levels amid market-wide selling pressure is noteworthy.
Final Thoughts: Market Uncertainty Continues, but Watch for Accumulation Zones
The crypto market remains in a fragile state, with Bitcoin and Ethereum both struggling to hold key levels. The formation of new CME Gaps and the rejection at multiple resistance levels suggests that more downside is possible before a true reversal can occur.
However, oversold conditions in several altcoins, including LTC, SOL, and S, may offer strong long-term accumulation opportunities.
The key takeaway here is patience. As always, the market will test traders’ resolve, but sticking to a disciplined strategy is essential to navigate the volatility effectively.
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