BTC Pulls Back Deeper, But RSI Signals Brewing Reversal
Bitcoin dropped another -2.89% yesterday, sinking further into the daily TBO Cloud. Although the daily RSI hasn’t reached oversold levels, the 4h chart reveals hidden bullish divergence—just like the pattern that sparked the early August rally. Back then, as price kept falling, RSI began rising, followed by a TBO Breakdown that marked the bottom. We're seeing the same setup again. Adding to the complexity, the TBT Forecaster flipped bearish for BTC, a rare event last seen in late December 2024, suggesting possible chop before a rebound.
ETH Leads the Market with CME Gap Closure and Bounce
ETH experienced a deeper drop than BTC, but found support at $4,050 and began bouncing—right after closing the CME Gap at $4,098.50. This is a major technical event and typically signals bullish continuation. While ETH/BTC printed a TBT Bearish Divergence, it did so under similar conditions earlier this month before reversing and shooting up to the 0.5 Fibonacci level. The next target remains the 0.618 Fib, which would support a broader altcoin rally.
Stablecoin Dominance Cools Despite TBO Bearish Signals
Stablecoin Dominance spiked 3.46% yesterday and printed a TBO Close Short inside the Cloud—traditionally a warning. But RSI formed a higher low without breaking past previous highs, and combined dominance didn’t exceed its August 2nd peak. The Slow line remains angled downward, confirming a bearish macro trend. On the 4h, a TBO Breakout printed, but it appears overextended, suggesting a local top rather than sustained strength.
Dominance Metrics Show ETH Still In Control
Bitcoin Dominance remains weak below the daily Cloud, even after recent 4h TBT Bullish Divergence signals. ETH Dominance, on the other hand, continues to shine—it printed a TBT Bearish Divergence, but the price stayed above the Cloud, a strong bullish signal. OTHERS.D is still in bearish consolidation. Meanwhile, TOTALES.D is flashing hidden bullish divergence and printed another daily TBO Close Long. These patterns mirror early August's pre-bounce setup, reinforcing bullish expectations.
ALTs Print Mixed Signals but Rebound Potential is High
Several altcoins, including XRP, BNB, SOL, and ADA, experienced deep pullbacks but printed TBO Close Longs, suggesting potential reversals. ADA and LINK notably bounced at or near TBO Fast Lines, with LINK showing strong bullish momentum. SUI, BCH, and TAO lost support despite bullish Slow lines, while MNT continued outperforming.
SPX6900 and PUMP may have bottomed, with potential TBO Springboard Bounces forming. AERO and GRASS stand out as stronger alt plays, with GRASS forming a TBT Bullish Divergence Cluster. Meanwhile, ZORA’s 20% drop and declining RSI is a red flag despite technical bullishness.
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