The cryptocurrency market remains on edge as Bitcoin (BTC) struggles to maintain key support at $93,000 following a multi-day downtrend. Despite temporary bounces, BTC faces resistance at $98,000, with a potential retest of $91,000 looming if bullish momentum fails to materialize.
Meanwhile, Ethereum (ETH) is flashing another bullish divergence signal, and Solana (SOL) is showing signs of a short squeeze after recent FUD-driven declines. Traders are closely watching Bitcoin dominance, stablecoin inflows, and volatility indicators, all of which suggest an imminent major market move.
Bitcoin Price Analysis – Will BTC Recover or Drop Below $91K?
On the 4-hour chart, Bitcoin dropped to TBO support at $93K before rebounding, but upside remains limited. Over the past four days, BTC has steadily lost ground, struggling to gain bullish momentum.
Key technical indicators highlight ongoing weakness:
- On-Balance Volume (OBV) has broken support, signaling declining buyer strength.
- BTC RSI (Relative Strength Index) remains below key resistance, indicating a lack of strong bullish momentum.
- Trading volume remains low, increasing the risk of another drop toward $91,000 if BTC fails to reclaim higher ground.
If BTC can secure a daily close above $98K, it may trigger a short-term recovery, but failure to do so increases the likelihood of a continuation toward $91K before finding stronger support.
Ethereum (ETH) Flashes Bullish Divergence – Is a Reversal Incoming?
Unlike Bitcoin, Ethereum (ETH) is printing a bullish divergence on the daily chart, signaling a potential trend reversal.
Key factors supporting ETH’s rebound:
✅ Second consecutive bullish divergence signal suggests strengthening momentum.
✅ RSI has held above key resistance levels, maintaining its bullish structure.
✅ If ETH confirms this breakout, it could initiate a strong recovery rally.
However, for confirmation, Ethereum must secure a daily close above its resistance levels, accompanied by an increase in trading volume to sustain the upside momentum.
Solana (SOL) Drops Due to FUD – A Buying Opportunity?
The recent $LIBRA controversy has fueled significant selling pressure on Solana (SOL), but market analysts believe the fear, uncertainty, and doubt (FUD) may be exaggerated.
🔹 Smart money is accumulating SOL at lower levels while retail traders rush into short positions, making a short squeeze increasingly likely.
🔹 On the 4-hour chart, RSI made a higher low, a common bullish reversal indicator.
🔹 The TBO Slow Line remains upward-sloping, suggesting that SOL is primed for a gradual recovery.
While Solana’s short-term outlook remains uncertain, long-term investors are taking advantage of the dip, expecting a recovery once the panic selling subsides.
Market Trends: Stablecoin and Bitcoin Dominance React to Uncertainty
Market fear has triggered higher stablecoin dominance, reflecting increased investor caution.
📌 Stablecoin dominance rose slightly yesterday, pushing RSI higher – a potential reversal signal.
📌 Bitcoin Dominance (BTC.D) increased by 1%, as traders moved capital from altcoins into BTC for safety.
📌 OTHERS Dominance (small-cap altcoins) is showing oversold conditions, particularly SOL-based tokens.
As the market stabilizes, analysts expect a shift back into altcoins, provided BTC remains resilient above support levels.
Bitcoin Volatility Indicator Signals a Big Move Ahead
A crucial volatility metric, BVOL7D, has returned to the Bounce Zone, where it typically spikes into the Rejection Zone – a sign of imminent increased volatility.
This suggests that BTC is on the verge of a major breakout or breakdown. The next big move will determine the short-term direction of the entire market.
Stock Market & Gold Update: TradFi Markets Rally, Gold Faces Resistance
🌍 Traditional financial markets (TradFi) continue to surge, with the S&P 500, Nasdaq, and FANG Index hitting record highs.
📈 Gold prices are also climbing, but daily RSI divergence suggests slowing momentum, indicating a possible consolidation phase ahead.
Key Altcoin Watchlist – Which Coins Are Showing Strength?
✅ Aptos (APT) – Struggling with resistance, needs confirmation for a breakout.
✅ Litecoin (LTC) – Strong trading volume makes it a solid candidate for short-term gains.
✅ TAO – Printed a TBO Close Short, hinting at a possible resistance test.
✅ Monero (XMR) – Continues to show resilience as a preferred privacy coin.
✅ Jupiter (JUP) – Oversold, holding long-term support at $0.68.
✅ Maker (MKR) – Printing a potential reversal signal, suggesting upward momentum.
Conclusion – What’s Next for Crypto?
While the market is experiencing volatility, key signals suggest that BTC and major altcoins are approaching critical inflection points.
🔹 BTC must hold $93K support – a failure could send prices toward $91K.
🔹 ETH remains one of the strongest setups, with bullish divergence signaling potential upside.
🔹 SOL and smaller altcoins are primed for recovery, but patience is required.
With volatility indicators flashing, traders should watch for major breakouts or breakdowns in the coming sessions. Stay updated with the latest crypto analysis at www.dailyforex.pk 🚀