Bitcoin's relentless rally persists, closing at $72,729** (up 4%) on Tuesday and hitting an intraday high of **$73,600. This surge reinforces key support levels and signals sustained bullish momentum, fueled by a confirmed Trending Breakout (TBO) signal. Below, we analyze Bitcoin’s trajectory, its impact on altcoins, and the impending "rubber band effect" that could reshape crypto markets.
Key Bullish Signals Driving Bitcoin’s Rally
1. Breakthrough of Local Highs
Bitcoin shattered three local resistance levels in a single candle, marking a 7% gain over two days. This demonstrates strong buying pressure and validates upward momentum.
2. Daily TBO Breakout
The TBO breakout suggests further upside potential, possibly triggering a liquidation cascade that forces short sellers to cover positions at higher prices—amplifying BTC’s climb.
3. Volume and On-Balance Volume (OBV) Strength
- Surge in Volume: Yesterday’s volume exceeded 2x the 30-day moving average.
- Rising OBV: Indicates sustained demand, though a steeper TBO Slow line angle would confirm long-term bullishness.
Bitcoin Dominance & Stablecoin Trends
BTC Dominance Above 60%
Bitcoin’s market share now exceeds 60%, diverting capital from altcoins. Key insights:
- Stablecoin Dominance Drop: Fell 3% yesterday, closing below the TBO Cloud—a bullish indicator for crypto inflows.
- Target Watch: If stablecoin dominance hits 6.19%, expect accelerated capital rotation into BTC and alts.
Projected BTC Dominance Growth
- Weekly RSI breaches resistance, favoring further BTC dominance gains (potential target: 64.21% Fibonacci level).
- Short-term pullbacks are possible, but the trend remains BTC-centric.
Altcoins and the Rubber Band Effect
Short-Term Altcoin Struggles
- Capital Concentration in BTC: Alts underperform as Bitcoin leads the rally.
- OTHERS.D at Critical Support: Altcoin dominance (9.19%) hovers near support but remains bearish below the TBO Cloud.
Long-Term Opportunity
- Rubber Band Dynamics: Once BTC’s rally slows, expect rapid capital rotation into oversold alts.
- RSI Oversold Signal: Alts may see brief relief rallies, but the true breakout awaits BTC’s stabilization.
The Bull Run Is Just Getting Started
Bitcoin’s dominance sets the stage for altcoin resurgence later. Key takeaways:
- BTC Leads Now: Focus on Bitcoin for near-term gains.
- Prepare for Alt Season: Monitor BTC dominance for signs of a top to time altcoin entries.
👉 Why Bitcoin’s dominance matters for your portfolio
FAQ
Q: How long will Bitcoin’s dominance last?
A: While BTC dominance could reach 64.21%, altcoins typically rebound sharply once BTC’s momentum stalls.
Q: When should I buy altcoins?
A: Watch for BTC dominance plateauing and altcoin RSI recovery.
Q: What’s the rubber band effect?
A: A metaphor for altcoins’ potential snap-back rally after prolonged BTC outperformance.
👉 Mastering crypto market cycles
Disclaimer: This content is for informational purposes only and does not constitute financial advice.