Bitcoin Technical Outlook
Bitcoin’s recent pullback produced a bearish engulfing candle, though both CME gaps have now closed. On‐Balance Volume (OBV) registered a bullish cross above its moving average on Monday, suggesting that sustained green daily closes on high volume could drive OBV—and its MA—higher. Hourly charts showed two TBT Bearish Divergences that correctly flagged the reversal, but these are less reliable than daily or weekly signals. On the weekly timeframe, a TBO Close Long is in progress; however, a push above $110,000 would invalidate that setup. While a rally toward $120,000 remains possible, the risk of a market top forming this month continues to warrant caution.
Ethereum Price Action
Ethereum experienced a sharp pullback that had the beneficial effect of closing its CME gap near $3,435—the October 10 liquidation low. Price has consolidated around this level for the past week, briefly dipping below before holding support, which sets the stage for a potential bounce. No additional major technical setups are currently evident beyond the gap closure and this key support test.
Market Dominance Metrics
Stablecoin dominance rebounded 3.20% after touching the daily TBO Fast line, a classic TBO Springboard Bounce. Yet daily RSI did not confirm strength, indicating the likelihood of a second TBT Bearish Divergence soon. Bitcoin dominance (BTC.D) nudged higher on BTC’s pullback but remains within the daily TBO Cloud, suggesting further decline ahead that would support an altcoin rally. OTHERS.D sits in bullish consolidation within its TBO Cloud, with a short‐term target of 8.33% at TBO resistance. TOTAL E100.D is printing its third TBO Close Short, reinforcing the view that a broader market peak may occur by mid‐December, followed by a bear market—albeit only after one final altcoin surge.
Macro and Traditional Finance
The U.S. Dollar Index (DXY) remains in strong bullish mode above its daily TBO Cloud but has retraced to the TBO Fast line. We anticipate a further drop toward TBO support at 96.891 before resuming its uptrend as early as late December. Both the S&P 500 and Dow Jones Industrial Average are approaching their respective TBO resistance levels, and the cooling VIX suggests a likely year‐end “Santa Claus Rally” in equities.
Precious Metals Market
Gold has recovered above its daily TBO Cloud but shows early signs of waning momentum. Silver, however, continues its advance toward TBO resistance above $51, reflecting strong risk appetite among metals investors. This behavior parallels the bullish sentiment in crypto markets and supports a continued upward trajectory across asset classes over the next five to six weeks.
Altcoin Highlights
Among major altcoins, BNB is testing its 1.272 Fibonacci extension from the 2021–22 retracement, with both volume and RSI declining—potentially marking a final rally before stronger resistance. XRP closed its recent TBO Close Short, presenting a favorable entry zone. SOL’s pullback found support at last week’s open and close levels, while DOGE and ADA are each forming TBT Bullish Divergences on the daily chart, targeting TBO resistance at 0.23379 for DOGE and higher for ADA. LTC and DOT have both closed their TBO Close Shorts, and ZEC is executing a TBO Springboard Bounce. Additional tokens such as ICP and SKY are holding long‐term support, indicating that the broader altcoin market is primed for an extended rally—though traders should scale out profits gradually to maximize returns.
Learn my strategies and the tools I use every day by visiting The Complete Cryptocurrency Investor by Mastering Assets.
