Bitcoin is currently testing its daily support levels as alerts regarding altcoin pullbacks increase. I have also sold off more altcoins while keeping an eye on potential dip-buying chances.
Bitcoin Revisits Daily Support
For the first time since September 18, Bitcoin has reached its daily TBO Fast line. I consider this a buy-the-dip moment, although caution is warranted due to ongoing warning signs. A daily TBT Bearish Divergence is developing, and a TBO Close Long has already been confirmed on the four-hour chart. While the daily signal is evolving, the four-hour signal has been confirmed. Testing support does not guarantee a bounce.
Ethereum Shows Stronger Momentum
Ethereum has decreased by about 3%, with a developing daily bearish divergence. Its Slow line and the On-Balance Volume moving average remain more bullish compared to Bitcoin’s. This relative strength reinforces my perspective on the pullback as a dip-buying chance, rather than a reason to react uniformly to each downturn. The reversal caution is still in development and has not transitioned into a confirmed daily signal.
Stablecoin Dominance Signals Unconfirmed Weekly Caution
The overall stablecoin dominance has reached its daily Fast line and is forming a daily TBT Bullish Divergence. The associated weekly chart is also undergoing a bullish RSI reset, although it has yet to confirm. A move towards the weekly Fast line at 10.25% dominance may indicate a more pronounced crypto pullback. This percentage measures dominance, not the price of Bitcoin or an anticipated percentage loss.
Altcoin Cautions Lead to Further Reduction
OTHERS.D remains fundamentally strong bullish with a macro bullish Slow line. Nonetheless, a second divergence was finalized on Tuesday, prompting me to liquidate more altcoins to safeguard my portfolio and create liquidity for potential further price declines. TOTALE100.D confirmed a bearish divergence on Tuesday, while TOTALES.D is now forming a similar pattern, though TOTALE50.D is yet to be notably affected. On separate market-cap charts, TOTALES, TOTALE50, TOTALE100, and OTHERS are all exhibiting potential bearish divergences. These signals are not all confirmed at this time. Dominance reflects market share rather than spot price or total market cap in dollars.
Dollar Strength Alongside Record Stock Market Highs
The DXY remains on a strong bullish trend above its daily TBO Cloud. The EUR/USD currency pair continues to exhibit a strong bearish trend despite a minor bullish RSI reset on Tuesday, while USD/JPY is in a bullish consolidation phase, likely heading higher. The SPX and NDX indexes reached new all-time highs on Tuesday, although S&P futures ended just below TBO Resistance. Oil futures respected short-term support; I still anticipate a break, which could provide relief to gold and other precious metals. Gold remains strongly bearish but is holding above recently established support levels. Silver and platinum are experiencing significant bearish trends, while uranium has finally shown a bullish rebound.
The Slow Line Differentiates Stronger Dip-Buy Candidates
Numerous altcoins are nearing their Fast lines. The trajectory and angle of the Slow line are significant: an upward trend provides greater confidence for purchasing a dip, while a flat or downward trend necessitates heightened caution. BNB has a substantially rising Slow line and is testing its Fast line; I am watching for another TBO Springboard bounce towards resistance at 799, not claiming that the bounce has already occurred. In contrast, DOT is showing a bearish-divergence cluster alongside a sharply descending Slow line. ADA has generated a third consecutive breakout at the upper boundary of a bear-flag channel, although this boundary remains a clear resistance point. It may push above it, but that is not yet confirmed. The broader pullback caution holds significance, but this also presents the dip-buying opportunity we have anticipated.
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