Bitcoin is still trading above the first resistance fan line, marking its third consecutive day in this position and confirming a successful break. Daily RSI remains pinned against long-term overhead resistance from January, and both OBV and daily volume continue to show weakness.
Compounding concerns, a second TBT Bearish Divergence signal has now appeared on the 4-hour chart, a setup that has previously preceded short-term pullbacks. Given the current lack of strong trend confirmation on shorter time frames, traders should remain cautious.
Ethereum Dips Below the Cloud as Momentum Fades
Ethereum closed below the daily TBO Cloud yesterday, losing a key level it had just recently reclaimed. While daily RSI is still above the broken resistance line, both OBV and volume suggest that bearish pressure remains. This lack of follow-through is consistent with Ethereum’s broader underperformance compared to Bitcoin.
Stablecoin Dominance Spikes Briefly Without Breaking Trend
Stablecoin dominance saw a sharp increase in volatility due to events on the Hyperliquid exchange, yet it failed to break back above the daily TBO Cloud. This is an encouraging sign for broader crypto markets, as it suggests the spike was reactionary and not indicative of a new bullish trend in stablecoins. Continued movement within the cloud suggests ongoing bearish consolidation.
Altcoin Dominance Still Bullish but Short-Term Signals Caution
OTHERS.D remains strong, now on its third daily candle above overhead resistance. Daily RSI continues to climb, but 4-hour charts are flashing mixed signals. The recent TBO Breakout cluster was followed by a TBT Bearish Divergence signal, which typically suggests short-term weakness. This contradiction makes near-term direction less clear and warrants a cautious approach for altcoin positions.
Crypto Market Cap Charts at a Crossroads
The TOTAL market cap chart is also on day three above newly broken resistance, with RSI testing overhead levels. While OBV remains above the moving average, volume is still lagging. On the 4-hour chart, a second TBT Bearish Divergence signal has formed, and the flat TBO Slow line strengthens the case for a potential near-term pullback. OTHERS market cap, meanwhile, is finally starting to bounce off its long-term OBV support, though conflicting 4-hour signals echo the caution from broader market charts.
Volatility Likely Ahead as BVOL7D Enters Bounce Zone
BVOL7D has now entered its Bounce Zone, with daily RSI hitting an extremely low 6.55. Historically, when this zone is hit, volatility soon returns to the market. In each of the last major instances, BTC saw increased volatility shortly after entering this zone—often with initial upside followed by a sharp correction. Traders should prepare for possible whipsaw action, especially as these setups have preceded both rallies and dips.
GameStop Adds BTC, Spiking 11% on the News
GameStop added Bitcoin to its reserves, triggering an 11.65% rally in GME’s stock price. This move is being interpreted by markets as a strong show of demand for BTC and adds to broader sentiment that institutional and corporate interest in crypto remains healthy.
Altcoin Watchlist: Mixed Signals and Early Breakouts
XRP looks weak again, failing to hold above the daily TBO Cloud and showing lackluster volume and neutral RSI. BNB tested overhead resistance earlier in the week but failed to break through—if BTC drops, BNB could fall back to $575.
SOL continues to be one of the more resilient charts, bouncing off prior resistance, now turned support. OBV is rising and RSI remains strong, but the 4-hour chart has now printed a TBT Bearish Divergence signal, which could mean a short-term pullback.
SHIB printed a TBO Close Short signal on yesterday’s candle and saw a 13% pump with nearly double its average volume. TON is nearing overhead resistance but is showing weakening RSI and declining volume. SUI remains strong and is holding above resistance for a third day.
Hyperliquid Drama Sparks Concern Over Exchange Vulnerabilities
A coordinated short attack on the $JELLYJELLY token via Hyperliquid revealed a vulnerability in the exchange’s mechanics, leading to a 600% pump and potentially massive losses for the platform.
While Hyperliquid halted trading of the affected token, the resulting volatility spilled into the broader altcoin market and impacted short-term sentiment. This event raises serious concerns about DEX risk exposure and how unexpected manipulation can ripple through low-volume markets.
Altcoins Heating Up but Volatility Remains a Risk
The number of bullish altcoin setups is increasing, but caution is still warranted. Traders should look for early entries now rather than chasing later breakouts. Use profit-taking strategies on the way up and consider reinvesting on pullbacks. While BTC may face short-term turbulence, the broader market is showing signs of strength and early recovery.
For those looking to sharpen their investing strategies and confidently navigate market volatility, The Complete Cryptocurrency Investor at Mastering Assets offers everything you need to succeed—from foundational crypto knowledge to practical tools for building a strong portfolio.
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