Bitcoin Market Overview
Bitcoin experienced a modest pullback yesterday but continues to hold critical support, remaining inside the daily TBO Cloud in a bullish consolidation mode. Key indicators such as daily RSI are trending higher despite muted volume and weak OBV, suggesting momentum is building for an upside continuation.
The next resistance test is $94,300, aligned with the fan line. A decisive break above this level would target the top of the parallel channel, forming the bear flag’s upper boundary, though it may also invite another pullback. Low weekend trading volumes and potential CME gaps warrant caution.
Ethereum Momentum and Altcoin Sentiment
Ethereum has outperformed Bitcoin, piercing overhead resistance on consecutive sessions and positioning for a short-term target of $3,435 from the October 10 low. While volume remains below its moving average, on-balance volume holds above its MA, and Ethereum rests within the bullish consolidation of the daily TBO Cloud.
Notably, the ETH/BTC ratio continues its ascent, historically a precursor to broader altcoin rallies. Combined stablecoin dominance briefly closed above its daily TBO Cloud but is poised to drop back inside, a bullish sign for altcoins that may be confirmed with a TBO Close Long on the stablecoin dominance chart.
Market Dominance Trends
Bitcoin dominance (BTC.D) remains macro bearish as indicated by the TBO Slow line, with expectations for a decline toward 57% and below. When both stablecoin and Bitcoin dominance fall in tandem, historical patterns favor altcoin strength.
Ethereum dominance (ETH.D) triggered a TBO Close Short this week, marking a shift of market share toward Ethereum, while the 'Others' dominance index (OTHERS.D) is forming a second TBT Bullish Divergence on today’s candle, suggesting smaller altcoins may follow Ethereum’s lead.
Traditional Finance and Macro Indicators
The U.S. dollar index remains unchanged for now, but USD/JPY appears set to decline further, which could pressure the Bank of Japan into intervention. S&P 500 futures display thin volume and a cautious advance above short-term resistance, though the VIX confirmed a TBO Open Short and fell to 15.79, indicating reduced market fear.
The Nikkei 225 is testing highs near 50,390 on subdued volume, trading above the daily TBO Cloud with rising RSI—signs of strength yet potential exhaustion at current levels.
Commodities Outlook
Gold remains relatively flat around $4,200, exhibiting muted volatility. Silver is showing signs of a near-term pullback, confirmed by a TBT Bearish Divergence on the 4-hour chart.
Altcoin Trading Opportunities
Traders should monitor altcoins that have entered the daily TBO Cloud, indicating bullish consolidation. TRX and LINK have recently re-entered their clouds, while SOL’s bear flag offers a short-selling setup. ZEC is targeting its TBO Fast line near 450, and FARTCOIN presents a bullish consolidation entry at its daily fast line with supportive volume and OBV.
Additionally, COAI is printing a second TBO Close Short on the 4-hour timeframe, signaling a potential bullish reversal. DASH has formed a cluster of TBT Bullish Divergences on the 4-hour chart, aiming for overhead resistance near 57, and ZORA is developing a daily TBT Bullish Divergence cluster to watch.
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