Bitcoin has finally broken through the overhead resistance level amid an expected pennant formation and is close to testing all-time highs. This breakout is consistent with expectations for such a formation and reinforces the broader bullish narrative even as the CME gap approaches $77,000. Encouragingly, the daily TBO slow line remains at an upward angle, indicating that the macro trend is still intact. Volume has also increased over the past three days, a welcome change from last week's consolidation period.
Ethereum outperforms Bitcoin in strong weekly indicators
Ethereum has outperformed Bitcoin and is up 6% today, consolidating its upward trajectory on the TBO breakout cluster. On the weekly chart, Ethereum is approaching the TBO resistance level at $3,887, the RSI is in overbought territory, and the OBV is trending above the moving average.
Although the ETH/BTC ratio remains bearish, signs of a reversal are emerging, suggesting that Ethereum may be able to maintain its momentum.
Changes in market power suggest growing opportunities
Stablecoin dominance continues to decline, approaching the critical 5% level, indicating a shift from fear to greed within the market. The stablecoin's daily TBO slow line is currently sloping significantly downwards, further confirming this trend.
Meanwhile, Bitcoin's dominance is showing signs of temporary stabilization, but it is still overextended from the TBO first line. This increases the chances that the altcoin will gain traction, especially as OTHERS.D is showing strong bullish features such as the TBO breakout cluster and uptrend indicators.
Survive the market story and live patiently
Attention should also be paid to identifying shifts in the market narrative as Bitcoin approaches the psychologically important $100,000 level. Whether it's a legacy coin making a comeback or a new utility token preparing to soar, traders should keep a close eye on which ecosystems are driving the movement. Patience is still an important virtue at this stage of the market cycle, as some coins may not make parabolic movements until much later. Traders can maximize profits in this evolving bull market by staying alert to market rotations and aligning with emerging trends.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation for the exchange of products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and/or damages arising from the use of this publication.
