Bitcoin is showing renewed strength today, with price action approaching the last remaining CME Gap at $84,790. The TBT Bullish Divergence Signal from Tuesday has held up well, with daily RSI forming a higher low. Although on-balance volume remains bearish and Bitcoin is still trading below the daily TBO Cloud, this could be the beginning of a meaningful reversal. However, given the number of failed attempts at calling the bottom in recent weeks, many traders remain skeptical about whether this is the real turning point.
On the weekly time frame, Bitcoin is still significantly oversold from a price perspective, but weekly RSI did not close below 25, which is a positive sign. The short-term target remains at $89K, where Bitcoin is likely to encounter resistance. If BTC reaches this level, it is expected that many futures traders will get liquidated—both those shorting too early and those longing too late. This highlights why spot trading remains the safer approach in these volatile conditions.
Ethereum Continues to Struggle Without Signs of a Reversal
Ethereum continues to underperform the broader crypto market, showing no significant bullish signals. The ETH/BTC ratio reflects this weakness, reinforcing the notion that Ethereum remains deeply bearish. Until Ethereum starts printing reversal signals and attracting stronger volume inflows, its trend is unlikely to change.
Stablecoin Dominance Declines, a Positive Signal for Crypto Markets
Stablecoin dominance declined again yesterday, which is a bullish sign for the broader crypto market. However, for confidence to return, this trend must continue. While the daily TBO Cloud remains green, indicating an uptrend, the TBO Slow line remains relatively flat, suggesting that the momentum behind the decline is not yet strong enough to call a full market recovery.
It is a positive sign that stablecoin dominance was rejected at the 8.22% TBO Resistance level. However, further downside is needed to confirm that market sentiment is shifting toward risk-on behavior.
Bitcoin Dominance at a Key Turning Point
Bitcoin dominance appears poised for a pullback, mirroring its movements from November 2024. A combination of TBT Bearish Divergence and multiple TBO Close Long signals suggests that BTC.D is preparing to decline. Daily RSI also supports this view, as it continues to struggle to push above 70.
Top 10 Dominance remains on track, reflecting the relative strength of larger-cap cryptocurrencies. However, OTHERS.D, which represents mid- and low-cap altcoins, has yet to show the same bullish momentum. While daily RSI continues to form higher lows, altcoins still need to push into the daily TBO Cloud to confirm a broader recovery.
Total Market Cap Faces Resistance as Volume Remains Key Concern
The total crypto market cap briefly tested overhead resistance yesterday, a level that has been a major hurdle since late February. Although price action remains sluggish, the higher low on daily RSI from earlier this week is a strong signal of potential reversal strength forming.
For the total market cap to establish a clear uptrend, two things must happen. First, the market needs to push back inside the daily TBO Cloud. Second, on-balance volume must move above its white moving average line, indicating that buying pressure is returning.
One area of concern remains with OTHERS market cap. Despite recent gains, on-balance volume failed to break above resistance. The last two daily green candles have been encouraging, but significant volume is needed to push OBV back above this key level. If volume does not increase, altcoins may struggle to gain momentum.
BVOL7D’s Slow Decline Raises Questions About Market Volatility
BVOL7D, which tracks Bitcoin’s volatility, has been slowly declining from its rejection zone rather than dropping sharply as it has in the past. This unusual behavior suggests that BTC could still experience further unexpected moves before settling into a stable trend. While daily RSI has already dropped below overbought territory, the slow decline in BVOL7D indicates that traders should remain cautious about potential market swings.
Altcoins Begin to Show Stronger Reversal Signals
Solana printed a TBT Bullish Divergence Cluster on yesterday’s close, a strong bullish reversal signal. It has managed to hold within its support range, and the next challenge is breaking above overhead resistance at $140. If SOL can reclaim this level, it would mark a significant technical shift.
XRP remains one of the strongest-looking altcoins, having never closed below the daily TBO Cloud during the recent sell-offs. However, it still needs to push above its current resistance level at $2.38 to confirm a bullish continuation.
Bitcoin Cash has printed a second TBO Close Short, which in this case is a bullish reversal signal. BCH often exaggerates Bitcoin’s moves due to its historical ties, making it a strong trading asset rather than a long-term investment.
Key Watchlist Coins Showing Signs of Recovery
Mantle (MNT) has had a difficult time since the Bybit ETH hack on February 21st, losing an additional 35% after that event. However, this week has been a strong recovery period, with a TBT Bullish Divergence signal on Tuesday, an OBV cross above its moving average, and a break above the first resistance level yesterday.
S (formerly FTM) continues to hold TBO Support and saw an RSI Reset this week, making it a strong candidate for short-term gains. The four-hour chart has printed multiple TBT Divergence signals, indicating an increasing probability of a reversal.
Final Thoughts: Patience Continues to Pay Off
Although the market has tested traders' patience with repeated failed reversals, the signs pointing to a recovery have been consistent. The bullish reversal scenario has been building for weeks, but continuous delays and manipulation have made the process frustrating.
For those holding positions that have yet to close in profit, it is important to remember that staying patient and following a structured trading plan remains the key to long-term success. Many traders bought in too early, but as long as risk management is in place, those positions still have a high probability of recovering.
As always, patience pays.
For those looking to refine their investment approach and navigate these conditions with confidence, The Complete Cryptocurrency Investor at Mastering Assets provides the essential tools and strategies needed to succeed.
