Bitcoin dip-buy signals meet daily reversal warnings

Kitco Media
By Aaron Dishner
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Bitcoin dip-buy signals meet daily reversal warnings teaser image

I am buying the dip while daily reversal warnings coexist with convincing hourly bullish signals. The bounce is not guaranteed.

Bitcoin dip-buy signals meet daily warnings

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BTC fell about 2.60% Wednesday to the daily TBO Cloud, printed a TBT Bearish Divergence and lost the next support fan line. I am buying the dip, not panicking. The hourly bullish divergence is very convincing, but it is not a guaranteed bounce. If BTC bounces even a little, I expect all ALTs to bounce much higher. That remains a conditional view, not a confirmed market-wide rebound.

Ethereum pairs a deeper pullback with hourly scalp strength

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ETH fell 4.57% Wednesday, closed inside the daily Cloud and printed a TBT Bearish Divergence. I am buying the dip here too; the hourly chart flashed a bullish-divergence scalp signal. ETH/BTC is working on a daily bullish RSI reset, not a confirmed reset. Its open Close Long from October 2 would be fulfilled by a Fast-line tag; that warning is not a bullish continuation signal.

Stablecoin timeframes argue for short-term profit discipline

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Combined stablecoin dominance bounced to its daily Fast line and confirmed a bullish divergence Wednesday. The daily Slow line still angles down, so the macro trend remains bearish. The weekly bullish RSI reset is unconfirmed, with four days remaining; the hourly chart has printed two bearish divergences. I am treating this as a short-term dip-buy opportunity. On charts that bounce, I plan to take about 30% profit right away. If the weekly reset confirms, I will sell more again. This is not an immediate sale of 30% of my entire portfolio. Dominance is market share, not spot price.

Altcoin strength is selective, not uniform

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OTHERS.D remains strong bullish above the Cloud, with an ascending Slow line and a Wednesday Fast-line tag; TOTALE50.D looks similarly good. A BTC.D drop looks likely given its choppiness and would help the market bounce. ETH.D has an oversold bullish RSI reset forming, and its TBO Support could move up to today's low. TOTALE100.D is weaker, with its Slow line declining since July. Separately, TOTALES market cap has a Wave reading of 10.30, above the bullish threshold of 6, and an hourly bullish-divergence cluster. That reading belongs to TOTALES, not OTHERS.D. SOL/ETH is about to push above resistance, not already through it. These are part of why I am buying the dip. Dominance is market share, not spot price or dollar market cap.

Dollar strength coexists with conditional commodity relief

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DXY remains very strong bullish; RSI has made a slightly lower high but is still overbought above 70. If DXY has a significant pullback, it would pull USDJPY below 152. Oil is in bearish consolidation inside the Cloud while its upward Slow line remains macro bullish. If it loses short-term support around 87.50, I expect a stronger reversal down, which should help gold and silver. I am not saying that support has been lost yet. PAXG/BTC Support moved down to Wednesday's low; the Fast line is the first-touch target, and the hourly bearish-divergence cluster is confirmed.

Litecoin springboard watch keeps the bearish caveat

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LTC is one of my springboard-bounce candidates. I see its TBT Bearish Divergence, but its Slow line is still angled upward. A springboard retraces to the Fast line, with an expected bounce toward TBO Resistance. My plan is to take some profit just below resistance and retain a meaningful amount in case price pushes well beyond it. I am not claiming a current entry fill or a completed LTC bounce. DOGE's Close Long is a bearish reversal warning, not a bullish dip-buy alert; a Fast-line tag fulfills the warning, not bullish continuation. DOT's daily bearish-divergence cluster is reinforced by its descending Slow line. BCH can still pump, but I am not interested in buying its dip because its macro trend is bearish. JUP has already completed its springboard; CRV is about to complete one, while MET already completed its bounce and closed above the 0.786 Fib level. Do not mistake completed moves for fresh pre-move setups.

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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