Bitcoin tests bear flag resistance as market awaits direction

Kitco Media
By Aaron Dishner
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Bitcoin tests bear flag resistance as market awaits direction teaser image

Bitcoin Technical Outlook

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Bitcoin approached the first resistance fan level without fully touching it, remaining confined within a bear flag pattern. Immediate overhead resistance is at yesterday’s high of $92,216, followed by the upper bear flag line near $98,000. On the downside, support resides around $86,000–$87,000. With volume failing to confirm a breakout into the daily TBO Cloud, we anticipate a period of sideways chop lasting several more weeks before any decisive move.

Ethereum’s Strength and ETH/BTC Dynamics

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Ethereum continues to consolidate bullishly within the daily TBO Cloud. On-balance volume has crossed above its moving average despite overall low volume, and the TBO Slow line is still rising, indicating a sustained bullish macro trend. The ETH/BTC pair also exhibits strong bullish signals—RSI momentum, TBO indicators and multiple TBT Bullish Divergence Clusters point to a target near 0.04 (about 16% upside). A pickup in volume could accelerate ETH’s outperformance and herald a broader altcoin rally.

Shifting Market Dominance

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Stablecoin dominance printed a TBT Bearish Divergence Cluster, an early warning of a potential reversal; a shift into TBO bearish consolidation could occur within 1–4 weeks, confirmed by a TBO Close Long. Bitcoin dominance “closed” its second TBO Close Short—bullish in isolation but still macro bearish given its declining TBO Slow line—suggesting further BTC.D weakness would favor altcoins. In contrast, Ethereum dominance is ascending inside the TBO Cloud in bullish consolidation, while total crypto market dominance (TOTALES.D) shows early bullish Divergence Clusters but needs to clear the first resistance fan above 91% to confirm a trend shift.

Traditional Markets and Macro Indicators

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The US Dollar Index remains above 97 with potential to retest that level. The S&P 500 failed to breach overhead resistance on Monday and is forming a weekly TBT Bearish Divergence Cluster—if confirmed, another pullback may align with a DXY rally and renewed selling pressure on equities and crypto. The VIX closed at 16.67 without signaling acute risk. In Asia, the Nikkei respects its resistance amid declining volume, while the Shanghai Composite’s weekly Bearish Divergence Clusters mirror historical market peaks (June 2015, November 2017, February 2021, November 2025), suggesting regional markets may be topping alongside the Hang Seng.

Precious Metals and Crypto Cross Analysis

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Gold remains in strong bullish mode above the daily TBO Cloud but shows short-term weakness: volume and OBV are bearish, RSI is softening, and price has stalled at new resistance. Silver exhibits similar weakness despite a bullish 4-hour TBO Slow line and recent bearish divergence. Platinum confirmed a second TBT Bearish Divergence, indicating a potential market top. The PAXG/BTC cross retains a bullish macro trend but could decline if Bitcoin rallies while gold falters, highlighting Bitcoin’s relative outperformance over the precious metal.

Select Altcoin Highlights

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ADA’s weekly RSI approaches a reset—a typically bullish reversal that previously led to a 32% rally before reversing. BCH is dropping from its daily TBO resistance. MNT’s 4-hour TBO Breakout hints at upside, though other indicators remain muted. Meme tokens like SHIB are printing multiple Bullish Divergence Clusters despite a bearish macro trend, suggesting localized rebounds. ZEC tagged its daily TBO Fast line and may face resistance near $600–$700, offering short opportunities. CRV remains firmly bearish on the daily, with any rallies serving as short entries. DASH struggles at overhead resistance, targeting a 0.382 Fib level near $62. FARTCOIN shows two 4-hour TBO Breakouts but must hold above its 0.236 fib retracement. VSN’s unusual volume inflows on KuCoin suggest accumulation ahead of a potential pump-and-dump cycle.

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Kitco Media

Aaron Dishner

Co-founder and lead instructor at The Better Traders, Inc., an international crypto education company, and owner of the popular crypto bot trading YouTube channel Moonin Papa, Aaron Dishner serves over 25,000 students across 36 countries as a world-leading bot trader and crypto day trading and swing trading expert. Combining his passion for educational excellence, stemming from a professional teaching background, with his remarkable skill set in crypto trading, Aaron’s mission is to make trading safe and accessible so anyone can learn to benefit from the greatest financial revolution of our time.
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