Bitcoin continues its strong performance, marking the third consecutive day above its first major resistance level. If today’s close remains above this level, it will confirm a full breakout. Daily RSI has now moved above overhead resistance for the first time since January, signaling growing momentum. However, daily volume remains weak, which suggests that bullish momentum is still developing. On-Balance Volume’s moving average is beginning to flatten, a subtle but positive sign that volume could soon increase.
On the weekly timeframe, BTC wicked into the TBO Fast Line, a level anticipated since early March. This marks the first touch of this technical level, and BTC is expected to continue pushing higher, potentially reaching $93,000 before experiencing a pullback. However, a new TBT Bearish Divergence signal has appeared on the 4-hour chart, raising the probability of a short-term retracement. Historically, similar setups have led to minor three percent corrections, which aligns with the open CME Gap around $84,865.
Bullish Consolidation Inside the TBO Cloud
Bitcoin remains in a bullish consolidation phase inside the TBO Cloud, which means price action will be choppy as BTC moves toward the cloud’s upper boundary. This is a normal part of the recovery process and should not be mistaken for weakness. A comparable scenario occurred in September 2024, when BTC was also recovering from a period of sideways trading. That setup resulted in a brief three percent dip before BTC resumed its uptrend. Expect turbulence as BTC ascends through the TBO Cloud, much like an airplane climbing through a storm.
Ethereum Struggles to Gain Strength
Ethereum continues to lag behind Bitcoin, showing no signs of leading this market cycle. On the weekly chart, ETH is still well below its TBO Fast Line at $2,678, a level that is unlikely to be reached for at least another few weeks. The ETH/BTC ratio remains weak, reinforcing the bearish trend for Ethereum. While ETH is technically recovering alongside BTC, it lacks the same bullish momentum. Until ETH decisively reclaims its daily TBO Cloud, it remains in a neutral to bearish position.
Stablecoin Dominance Continues to Decline
Stablecoin dominance remains inside the daily TBO Cloud, a positive sign for the broader crypto market. If BTC experiences a short-term three percent pullback, a brief spike in stablecoin dominance is expected as traders move to hedge. However, the long-term trend remains bearish for stablecoin dominance, which is a bullish signal for crypto. The next key support level is at 5.50 percent, and as stablecoin dominance declines, liquidity will continue flowing into crypto assets.
Bitcoin Dominance Drifts Lower, Favoring Altcoins
Bitcoin dominance remains in a neutral range, moving sideways inside the daily TBO Cloud. There is no clear trend, and RSI is completely flat, signaling indecision. A prolonged period of sideways movement is often bearish, as it reflects a lack of momentum in either direction. The longer BTC dominance remains stagnant, the more likely it is that capital will rotate into altcoins. This shift is already becoming evident in OTHERS.D, which tracks mid- and low-cap altcoins.
Altcoins Confirm Breakout as OTHERS.D Pushes Higher
OTHERS.D has finally broken out, closing above overhead resistance for the first time since January. This confirms that an altcoin rally is underway. Daily RSI continues to climb, supporting the bullish breakout.
Even more significant is the presence of TBO Breakouts on the 4-hour timeframe, a strong signal of imminent upside price action. Historically, when three consecutive TBO Breakouts appear before a move begins, the result is a rapid multi-day rally. Previous TBO Breakout clusters on this chart led to rallies of six to sixteen percent. Given the current setup, altcoins are likely to experience a short-term surge over the next four to five days.
TOTAL3, which tracks the total crypto market cap excluding BTC and ETH, has confirmed the altcoin reversal by printing a TBO Close Short signal on the daily chart. This is one of the most reliable bullish reversal signals. The 4-hour TOTAL3 chart is also showing multiple TBO Breakouts, reinforcing the idea that capital is rotating into altcoins. While OTHERS.D has not yet printed a TBO Close Short, it is highly likely to appear within the next one to two weeks, further confirming an extended altcoin rally.
Bitcoin Volatility Nearing a Breakout
BVOL7D, which measures Bitcoin volatility, continues to fall toward its Bounce Zone. Daily RSI has dropped to 7.67, an extremely oversold level that typically precedes a major volatility spike. While BVOL7D could drop slightly lower, the probability of an imminent BTC move is increasing. Given the TBT Bearish Divergence signal on BTC’s 4-hour chart, the most likely outcome is a short-term BTC pullback before continuing its uptrend.
Altcoins tend to overreact to BTC pullbacks, often dropping one-and-a-half to two times more than Bitcoin itself. If BTC experiences a minor correction, many altcoins could drop by five to ten percent before recovering. However, the broader market structure remains bullish. With multiple TBO Breakouts and TBO Close Short signals flashing across different charts, this pullback should be seen as an opportunity rather than a reason to panic.
Best Strategy: DCA Instead of Stop Losses
The best strategy for this environment is to use a dollar-cost averaging approach rather than relying on strict stop-loss levels. DCA allows traders to accumulate positions during shakeouts rather than getting stopped out prematurely. While bullish consolidation guarantees periods of volatility, these dips present excellent buying opportunities for those who can manage their emotions and remain patient.
Conclusion: Market Remains Strong Despite Short-Term Volatility
Bitcoin remains in a bullish trend, though short-term volatility should be expected. Ethereum continues to underperform, while stablecoin dominance remains in a downtrend, signaling further upside for crypto. OTHERS.D has confirmed an altcoin rally, and TOTAL3 has printed a TBO Close Short signal, reinforcing the shift in market momentum. However, BVOL7D is near its Bounce Zone, meaning that BTC volatility could increase soon, likely causing a short-term dip before resuming the uptrend.
Traders should remain cautious of sudden moves but also recognize that the broader crypto market is showing strong bullish signals. Any pullback in BTC should be viewed as a buying opportunity. For those looking to refine their investment strategy and navigate market volatility effectively, The Complete Cryptocurrency Investor at Mastering Assets provides the essential tools and strategies needed to succeed.
