Bitcoin chops as dollar strength raises pullback risk

Kitco Media
By Aaron Dishner
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Bitcoin chops as dollar strength raises pullback risk teaser image

My October 1, 2026 read keeps Bitcoin’s bullish context intact while separating confirmed dollar momentum from the still-unconfirmed historic DXY resistance break and other conditional pullback risks.

Bitcoin is chopping above the Cloud

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Bitcoin / TetherUS · 1D · Binance

BTC remains above the daily TBO Cloud in a bullish context, even as price chops without a clear direction. I see a possible repeat of September 10 with a pullback to the Fast line, roughly 2% below the current price. That is a risk scenario, not a confirmed breakdown, and the bearish OBV cross does not erase the broader constructive context.

Stablecoin dominance stays bearish but can spike on a pullback

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USDT.D+USDC.D · 1D · CRYPTOCAP

Combined stablecoin dominance remains strong bearish below the Cloud, with the Slow line pointing down in a strong macro bearish downtrend. If BTC has a bigger pullback, this chart will spike and create a buy-the-dip opportunity. Dominance is market share, not spot price, so a spike here would mean stablecoins gaining market share during a pullback, not a stablecoin price move.

Altcoin dominance still needs resistance closes

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Crypto Total Market Cap Excluding Top 10 Dominance, % · 1D · CRYPTOCAP

OTHERS.D finally closed green, but immediate TBO Resistance at 8.83% comes before long-term overhead resistance just above 9%. TOTALE100.D made the bigger move by reclaiming the Cloud. These dominance charts still need closes above TBO Resistance to confirm a strong bullish recovery and further bullish momentum.

A close-up of a bitcoin and ethereum

Cloud reclamation is not full recovery confirmation

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Crypto Total Market Cap Excluding Top 100 Dominance, % · 1D · CRYPTOCAP

TOTALE100.D reclaimed the Cloud, while TOTALE50.D only pushed a little higher. These dominance charts still need closes above TBO Resistance before I call the recovery confirmed. That is separate from the OTHERS, TOTALE50 and TOTALE100 dollar market-cap charts, which remain strong bullish above their Clouds.

Dollar momentum is confirmed while the historic line remains untested

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U.S. Dollar Index · 1D · TVC

DXY closed above TBO Resistance on Wednesday, confirming strong bullish momentum for the U.S. Dollar. It is separately approaching an untested long-term overhead-resistance line from 2025. A close above that second line has not happened; such a close would be historic and likely put more pressure on currencies and U.S. stocks. More broadly, if DXY continues higher, the pressure could ripple into global markets and crypto. A possible 20% pullback remains conditional, not a forecast certainty.

Equity downside levels remain conditional

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S&P 500 · 1W · SPCFD

S&P futures printed another TBO Close Long while the Slow line remains very strong bullish, but higher DXY pressure keeps downside risk in view. If SPX suffers a surprise pullback, 6,151 is the weekly Slow-line worst-case target, not a daily target or base case. NDX still looks strong, and its TBT Bearish Divergence is in progress but unconfirmed.

Learn my strategies and the tools I use every day by visiting The Complete Cryptocurrency Investor by Mastering Assets.

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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