Market Structure Signals Growing Vulnerability

According to @Crypto_TheBoss in a recent market update, Bitcoin dominance has slipped below the 60% support level, signaling a notable change in market dynamics. This breakdown points to a weakening grip for Bitcoin as capital flows begin to diversify into other areas of the crypto market. Moves like this often act as early signals of potential altcoin strength, as traders look beyond Bitcoin for opportunities.

The analyst noted that Bitcoin dominance has bounced from the 58% area, showing that some buying pressure emerged to defend the level. This bounce highlights temporary stability, but it does not yet confirm a recovery. Instead, it reflects a cautious response from the market, where buyers are attempting to prevent further declines while broader sentiment remains uncertain.

Looking ahead, @Crypto_TheBoss explained that if the 58% level fails to hold, Fibonacci retracement zones could act as key areas of support. Losing this support would deepen the bearish outlook and likely accelerate capital rotation into altcoins, shifting momentum away from Bitcoin’s leadership in the market.

Positive And Negative Technical Signals

@Crypto_TheBoss went on to highlight that the bounce from support shows buyers stepped in and temporarily halted the downside pressure. This kind of reaction often reflects how market participants are still willing to defend critical levels, even when sentiment leans toward caution. By holding above support, Bitcoin dominance was able to avoid a deeper immediate drop, though uncertainty still lingers.

The analyst further emphasized that Fibonacci levels are widely used in technical analysis as reliable support and resistance zones. For Bitcoin dominance, the Fibonacci structure provides a technical roadmap, guiding market participants on where the price may either stall, reverse, or accelerate if another leg lower unfolds.

In a negative scenario, @Crypto_TheBoss cautioned that losing the 58% support could trigger stronger selling pressure, pushing dominance further down. A breakdown below this level would not only signal structural weakness but also reinforce the narrative of Bitcoin losing its edge in market control. 

Such a scenario is often interpreted as a sign of capital rotation into altcoins. As Bitcoin dominance decreases, investor attention tends to shift toward alternative cryptocurrencies, sparking renewed activity and potentially driving sharp moves in the altcoin sector. This rotation could set the stage for fresh momentum in altcoins, particularly if Bitcoin struggles to quickly reclaim its lost ground.

Bitcoin (BTC) is trying to regain its critical level of support after it fell below the recent $115,000. Nevertheless, some analysts warned that cryptocurrency is in the correction phase with a potential 15%-25% drop.

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Bitcoin risk is below $110,000

On Monday, Bitcoin fell below the $115,000 level for the first time in nearly two weeks, retesting support of $114,500 before bounce. The flagship cipher has been hovering between local price ranges since August 7th, reaching its latest all-time high (ATH) of $124,200 before it was eventually rejected from the range high.

Currently, some market watchers have confirmed that BTC is in the corrective phase and may send cryptocurrencies below other important levels of support. Ali Martinez noted that recent rejections “came in the form of deviation, but often show weakness and open doors for a deeper pullback.”

Analysts say Bitcoin is trading in the price range of $112,000-122,000, suggesting that the local bottom is the next important level of support to see momentum fading.

Notably, cryptocurrency quickly bounced back from today’s decline, regaining its recently lost $116,500 breakout level and once again approaching the $117,000 area. For analysts, the confirmed rebounds reset bullish momentum and allowed prices to be sent to highs in the range.

However, if BTC prices drop again and $112,000 in support is not retained, the cryptocurrency risk will cause a $4,000 drop in the $108,000 area. Martinez emphasized that on-chain data shows a grasp of fluidity between these two levels.

Furthermore, the accumulation propensity score, which dropped to 0.20, indicates that holders are “redistributed Bitcoin, rather than accumulating at these levels.”

Has the price discovery been revised?

Analyst Rekt Capital pointed out that BTC failed to hold its significant $119,000 level in support on the weekly charts, closing on Sundays below the weekly bull flag pattern that had been developing since early July.

According to previous analysis, turning the bottom of the pattern into a resistance would be a bearish retest that could confirm a failure from the pattern and lead to a new retest of the $112,000 area.

In his recent performance, he claimed that Bitcoin has entered a second price discovery revision that has historically tracked the uptrend peak of the second price discovery during the fifth and seventh week.

“Interestingly, the risers formed last week quickly developed at the finish line in Week 6, as this risers saved the historical circularity that tends to be seen in price action throughout the cycle,” the analyst explained.

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Rekt Capital suggested that Bitcoin could transition into a revision period. Nevertheless, he noted that at this moment in the 2017 and 2021 cycle, the BTC pullbacks are 1-3 weeks, respectively, and 25% and 29% deep, so this revision may not last as long as the previous revisions.

“In both cases, these pullbacks were short and shallow due to the criteria for previous revisions in each cycle,” he detailed, and concluded that the BTC “should ideally resolve this pullback over the next few weeks, with a relatively shallow pullback of -15% to -25%.”

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Bitcoin staged a sharp recovery over the past week, rebounding from a dip below $114,000 to trade near $121,000, in what Glassnode described in a recent report as a shift from “seller exhaustion to a strong rebound near recent ATHs.”

The rally, however, came without a surge in spot market participation.

Glassnode data shows spot trading volumes fell 22% to $5.7 billion, close to their statistical low band, suggesting the rebound has been driven more by positioning shifts than deep conviction buying. The Spot Cumulative Volume Delta flipped 94% toward buy pressure, a sign that aggressive selling has been replaced by renewed demand, but not yet across a broad base of traders.

On the derivatives side, leveraged traders re-engaged aggressively, Glassnode detailed in its report.

Perpetual Cumulative Volume Delta, a measure of the buy-sell pressure in perps, jumped 88%, funding rates remained elevated, and options open interest climbed 6.7% to $42.4 billion. Yet, volatility pricing collapsed by almost a third, indicating a degree of complacency that has historically preceded large market moves.

ETF flows offered some relief, with U.S.-listed spot bitcoin ETF outflows halving to $311 million from $686 million the prior week. Even so, ETF trade volume fell 27.7% to $13.7 billion, keeping activity near its low band.

QCP Capital framed the weekend surge, which briefly pushed BTC above $122,000, as a function of thin order books and a broader risk-on shift in global markets.

“Crypto staged an impressive comeback over the weekend during thin, low-liquidity trading hours,” the Singapore-based trading firm wrote, noting that the bounce aligned with a rebound in U.S. equities and growing expectations for a September Fed rate cut.

While on-chain activity improved, active addresses jumped 8.4% to 793,000, and fee volume rose 10%. Glassnode cautioned that elevated profitability levels could quickly turn into selling pressure if sentiment shifts. With 94.1% of supply in profit and the realized profit-to-loss ratio climbing to 1.9, the market may be nearing a point where profit-taking accelerates.

The combination of thin liquidity, bullish derivatives positioning, and macro-driven optimism leaves Bitcoin primed for volatile moves as it approaches all-time highs, with the next test likely coming from Tuesday’s U.S. CPI release.

Polymarket traders lean toward a modest uptick in line with consensus that would likely keep BTC consolidating, with hotter prints posing a short-term headwind by delaying Fed cuts and softer readings offering a potential breakout catalyst if ETF flows and spot activity strengthen.

Market Movers

BTC: Bitcoin is trading at $118k as traders pull back and position themselves for the possibility that Tuesday’s CPI report might break BTC’s momentum.

ETH: Ethereum is trading at $4200. Analysts say that ETH’s rally is partially due to increased capacity on-chain and lower DeFi costs.

Gold: Gold slid to $3,355.13 as upbeat risk sentiment and Trump’s pledge to exclude gold from tariffs weighed on safe-haven demand, though losses were cushioned by rising Fed rate cut bets ahead of this week’s U.S. inflation data.

Nikkei 225: Asia-Pacific markets rose Tuesday, with Japan’s Nikkei 225 hitting a record high after the U.S.-China trade truce was extended, while investors awaited the Reserve Bank of Australia’s expected rate cut.

S&P 500: U.S. stocks eased, with the S&P 500 down 0.2% and just under its record, as investors await new inflation data .Meanwhile, Citigroup and UBS lifted their year-end S&P 500 targets, citing easing policy risks and solid earnings, with Citi raising its forecast to 6,600 and UBS to 6,100.

Elsewhere in Crypto

• Jeff Bezos’ Blue Origin Now Accepts Bitcoin, Ethereum and Solana for Spaceflights (Decrypt)
• Rumble Gains on Plans to Acquire Tether-Affiliated Northern Data (CoinDesk)
• Senate Banking Committee Democratic staff slam GOP crypto draft bill as ‘superhighway’ for dodging regulation (The Block)

• ADA prices have begun recovery waves from the $0.6420 zone.
• The price is below $0.680 and trades a simple moving average of 100 hours.
• On the hourly chart of the ADA/USD pair (Kraken data source), the break was $0.650 on top of the bearish trendline of connections with resistance.
• Clearing the resistance zone of $0.6850 may cause the pair to start another increase.

Cardano prices face resistance

Over the past few days, Cardano has seen a new decline from the $0.730 level, like Bitcoin and Ethereum. The ADA fell below the support levels of $0.70 and $0.680.

The lows formed at $0.6426, and prices are rising again. There was a move above the $0.6550 level. This price has cleared the FIB retracement level of 23.6%, a recent decline from the recent low of 0.7298 Swing High to $0.6426. Plus, on the ADA/USD pair hourly wage chart, the break exceeded the bearish trendline for connections with resistance was $0.650.

However, the bear is active near $0.6850 resistance and 50% FIB retracement levels, with a drop from the recent decline of $0.6426. Cardano Price is currently below $0.680 and trades a simple 100-hour moving average.

The advantage is that the price can face resistance near the $0.680 zone. The initial resistance is nearly $0.6850. The next important resistance may be $0.7090. If the resistance exceeds $0.7090, the price could launch a strong rally. If stated, the price could rise towards the $0.730 region. Any further profits may seek a move to $0.750 in the short term.

Another drop in the ADA?

If Cardano’s price does not rise above the $0.6850 resistance level, it could begin another decline. Instant support on the downside is close to the $0.6630 level.

The next major support is close to the $0.6500 level. A lower break below the $0.650 level could open the door for a $0.6320 test. The next major support is close to the $0.6175 level where the Bulls could possibly emerge.

Technical indicators

HOURLY MACD – ADA/USD’s MACD is losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – ADA/USD RSI is above 50 levels.

Key support levels – $0.6630 and $0.6500.

Major resistance levels – $0.6850 and $0.7090.

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Ethereum has once again proven its resilience, bouncing strongly off a long-term ascending support trendline that has consistently sparked major rallies in the past. This ascending trendline signals renewed confidence from buyers each time it’s tested. The latest rebound, taking place with visible strength, suggests that Ethereum may be gearing up for another powerful move higher.

Ethereum’s Trusted Trendline Strikes Again – Bulls Regain Control

According to UniChartz, in a recent post on X, Ethereum has once again delivered a powerful bounce from its long-term rising support trendline, a level that has consistently served as the launchpad for major upward moves in previous cycles. This trendline has proven to be more than just a visual guide; it’s a psychological and technical battleground where bullish sentiment has repeatedly resurfaced, helping ETH defy downward pressure when it matters most.

UniChartz further emphasized that this marks the third time ETH has successfully rebounded from this trendline, adding further credibility to its role as a dependable support level. With this repeated validation, the trendline is now firmly established as a foundation for Ethereum’s bullish structure. 

Looking ahead, if ETH manages to break decisively above the $2,030 to $2,160 resistance zone, it could open the door to a significant move toward the $2,540 level. This scenario sets the stage for renewed confidence in Ethereum’s long-term trajectory.

MACD And RSI Indicators Hint At Renewed Bullish Momentum

In the world of technical analysis, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators are among the most trusted tools for signaling potential market moves. Currently, both indicators suggest a possible resurgence of bullish momentum, drawing attention to the price action.

The 1-day MACD has recently moved into positive territory, the MACD line crosses above the signal line, often indicating the start of strong momentum. When combined with an increase in volume, the crossover becomes even more significant, demonstrating the potential for an extended rally.

On the other hand, the 1-day RSI has been gradually climbing and is sitting in the neutral to slightly bullish zone, which means the asset is not yet overbought. A reading above 50 generally suggests positive momentum, and as the RSI continues to trend higher, it reinforces the thesis that the market is preparing for a breakout.

Together, these two indicators are aligning to support the notion of a renewed upward momentum. Traders should watch for confirmation, particularly with price action breaking through key resistance levels, which would validate the signals provided by the MACD and RSI.

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Solana is trading at critical levels after a volatile week that saw major surges across the crypto market. While the rally has sparked optimism, analysts remain sharply divided. Some believe this is just a healthy correction within a broader bull cycle, while others warn that the crypto market may have already entered a new bear phase.

Related Reading

For Solana, the next few weeks are expected to be decisive. Top analyst Inmortal shared insights on X, highlighting that within the next 30 days, the market will likely reveal whether Solana’s latest recovery attempt is a simple bear market bounce or the beginning of a bull market dip and new expansion.

As Solana holds above key technical levels, price action will be critical to determine sentiment. The stakes are high, especially as macroeconomic uncertainty, driven by global trade tensions and monetary policy shifts, continues to cloud the broader financial landscape.

Investors should stay cautious, but alert. Solana’s next move could set the tone not just for its own trajectory, but for the altcoin sector as a whole heading into the summer months. The clock is ticking on this crucial phase.

Solana Approaches Critical Level Amid Sharp Recovery

Solana has rebounded sharply from its April 7 local low around $95, gaining an impressive 54% in just a few weeks. Bulls have regained momentum as Solana trades near critical resistance levels, with analysts calling for a potential push above $160 in the short term. However, despite this strong recovery, risks of a downside reversal remain high.

Since January, Solana has been one of the hardest-hit major cryptocurrencies. It lost over 65% of its value during the most recent downtrend, highlighting the intense selling pressure and increased speculation across the broader market. While the recent rally is encouraging, many are questioning whether it marks the start of a new bullish phase or just a temporary rebound within a larger bearish trend.

Inmortal’s insights emphasize that May will be a decisive month for Solana. According to him, “you can’t imagine how vital May is.” Over the next 30 days, the market is expected to reveal whether Solana’s recent strength represents a simple bear-market bounce or the beginning of a true bull-market dip that could lead to further gains.

The coming weeks will be critical, and Solana’s price action will likely set the tone for the entire altcoin market this summer.

Related Reading

Price Action Details: Key Levels To Watch

Solana (SOL) is trading at $146 after losing around 6% of its value since Friday. Despite the strong rally earlier this month, bulls are now facing increasing pressure to defend current levels. SOL must reclaim the $180 level, which aligns closely with the 200-day moving average (MA), to resume the bullish trend and regain market confidence.

The $180 mark is critical because a decisive move above it would signal strength and open the door for a push toward higher resistance zones. Without this breakout, however, the current rally risks fading into another lower high, further weakening Solana’s structure.

On the downside, losing the $140 level would be a major red flag for bulls. A sustained breakdown below this support could trigger a deeper correction, with price potentially dropping below the psychological $100 mark. Such a move would likely accelerate bearish sentiment and invite further selling pressure, especially as macroeconomic risks and global uncertainty continue to weigh on the crypto market.

Related Reading

The next few days will be key for SOL. Bulls must act quickly to defend, support, and attempt a recovery, or risk opening the door to another major leg down.

Featured image from Dall-E, chart from TradingView

Cryptocurrency trader and analyst Kevin Svenson is offering his forecast for Bitcoin (BTC) as the flagship digital asset hovers around 25% below the all-time high.

Svenson tells his 82,800 YouTube subscribers that Bitcoin still appears bullish over the long term on the monthly time frame after a major support zone held.

The crypto analyst, however, says the price movements of Bitcoin going forward are likely to be unpredictable amid uncertainty over tariffs imposed by the US on its global trading partners.

“Bitcoin just touched the 2024 highs as a support…

… if we’re going to hold that support level, Bitcoin is in the very long term still maintaining textbook uptrend structure. Previous resistance, new support. It’s pretty basic and pretty straightforward.

…we’re going to continue to see a lot of tensions, a lot of news that will shake up the market. So I expect this cycle to be less straightforward than most other cycles. I think it’s going to be a trader’s market.

Tensions and conflict will heavily affect the price where you’re going to see a lot more volatility. In past decades, we saw really just a straight line up after 2008, with a couple of hiccups in between. But generally, it was just a straight line up. Now I think we’re going to see much more volatility.”

Svenson further says that following a correction of double-digit percentage points, Bitcoin could rise by about 23% from the current level.

“I think the Bitcoin market has had a healthy retrace – 30% is standard for Bitcoin, no problem. We’ve seen that plenty of other cycles in the middle of a bull market. So taking it one trend at a time here, we’re probably going to get a recovery bounce at the very least.

At the very minimum, I’m looking for a recovery bounce up above $100,000…

…And from there we’ll see. Maybe we continue after that. Depends on what the global markets are doing.”

Bitcoin is trading at $81,550 at time of writing.

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An analyst known for nailing the end of the 2021 crypto cycle believes that Bitcoin’s drop below $80,000 is designed to lure BTC bears into thinking that the bull market is over.

Pseudonymous analyst Capo tells his 942,200 followers on the social media platform X that he thinks Bitcoin is now process of carving a mid-bull cycle bottom following a substantial correction from its all-time high of around $110,000.

According to the trader, BTC’s plummet to a 2025 low of $76,000 is a bear trap or a false breakdown that would lead to a sharp bullish reversal with altcoins leading the charge.

“Bear trap went lower than expected, but the local bottom should be in or very close.

A strong relief bounce is likely over the next few days, with altcoins expected to outperform Bitcoin.”

On the instant messaging platform Telegram, Capo says that he’s starting to see signs of strength for Bitcoin and altcoins in the lower time frames.

“Ideally, BTC needs to reclaim $84,000 and ETH $2,000 for bullish continuation…

Most altcoins are hitting major support after a strong correction.

Many people are panic selling at these levels. Others are waiting for lower prices.

Fundings are very negative, confirming the bearish sentiment.

There’s a lot of liquidity to the upside.”

At time of writing, Bitcoin is trading for $82,765 and Ethereum (ETH) is worth $1,926.

To support his bullish stance on altcoins, Capo says he’s closely watching the TOTAL2 chart, an alt index that tracks the market cap of all crypto assets excluding Bitcoin and stablecoins.

The trader shares a chart suggesting that TOTAL2 has successfully retested a crucial support area at $971 billion.

A bullish TOTAL2 chart indicates that the altcoin market is rallying. At time of writing, TOTAL2 is worth $1 trillion after dropping to a 2025 low of $974 billion.

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A widely followed cryptocurrency analyst and trader is leaning bullish on Bitcoin (BTC).

The analyst pseudonymously known as Kaleo tells his 687,400 followers on the social media platform X that Bitcoin is on the cusp of a bull season but could first go lower from the current level.

Based on the analyst’s chart, it appears he’s suggesting that Bitcoin could fall to under $82,000 before rallying to above $120,000.

“Sweep into the $80,000s is going to feel like the bottom rings of hell for altcoins after what they’ve already been through, but the bounce back across the board should be violent and glorious when it’s all over.”

Bitcoin is trading at $96,310 at time of writing.

The pseudonymous analyst also offers his outlook on the Polkadot/Bitcoin pair. According to Kaleo, Polkadot (DOT) is poised to go “up only from here” after a strong bounce at a major support level.

Polkadot is trading at 0.00005 BTC ($4.81) at time of writing.

On altcoins, the widely followed analyst says he believes the “heart of the bull market” is yet to be experienced.

“Entering into the most frictionless regulatory period the crypto market has seen in years, combined with the MOST support it has seen from the highest levels of the government, I have a very hard time believing that we don’t see significant growth in the altcoin sector outside of just memecoins.

The next leg up of the cycle will definitely have some madness in memecoins and non-fungible tokens (NFTs), but I really believe we’ll see a return to the roots of real tech and real products advancing adoption in this space.”

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