Bitcoin ended the previous session at $95,630, marking its highest daily close yet. However, it remains below the $95,000 resistance level that has capped its price since early April. This resistance has been tested five times before but has failed each time. Nevertheless, BTC has a positive trend in its indicators, but its daily trading volume is gradually decreasing.
Source: TradingView
However, there are signs of a decline in Bitcoin’s dominance. A Bearish Divergence Cluster has formed on the Bitcoin Dominance chart for the first time in weeks. Moreover, the RSI for dominance in Bitcoin is moving downwards, which means that Bitcoin will be outperformed by altcoins in the future. If this trend persists, Bitcoin may gradually cede its position, and many altcoins may surge.
Historically, such a trend has typically been observed when Bitcoin’s dominance decreases in altcoins. The ”OTHERS.D” index, which records altcoin dominance, has generated a second TBO Close Short signal. This particular signal has earlier led to massive altcoin pumps. The last time it happened, altcoins jumped by 35% in three weeks. From the current market structure, it is evident that altcoins can explode further in the future, provided the current trend persists.
Source: TradingView
Market Eyes Altcoins Over Bitcoin
However, there is always a possibility of a “whipsaw” move, especially with stablecoin dominance, showing signs of a reversal. The TBO Open Short signal on stablecoin dominance could become bullish. On the other hand, if the control by stablecoins tightens, then even if Bitcoin undergoes a bearish reversal, the altcoins are likely to be held back.
Related: The S&P, Bitcoin Dominance, and a Brewing Altcoin Setup – Here’s What’s at Stake
Ethereum (ETH) is already on the rise, having recently surpassed the $1,800 mark. Traders are getting more confident as the Ethereum network prepares for the “Purge” upgrade that is expected to optimize the network. Another altcoin that is also on the rise is Solana (SOL), which is trading above $148. This is due to the development of its NFT and DeFi markets, which puts it in a favorable position against its competitors.
The upcoming weeks are monumental for both Bitcoin and altcoins. If the BTC price fails to break above $95,000, altcoins may see an uptrend, leading to a period of exponential growth in the cryptocurrency market in the future.
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