Bitcoin and altcoins are showing bullish reversal signals

The cryptocurrency market is showing early signs of a potential reversal after recent volatility. Bitcoin’s 4-hour chart showed a bullish divergence signal (TBT), which is a positive indicator indicating that a recovery could be on the horizon. The slow TBO line on the 4-hour chart remains flat, confirming that this signal is worth paying attention to. In addition, a higher low on the 4-hour chart and a higher low on the RSI enhance the possibility of an upward turn.

On the daily time frame, BTC prints the TBO Close Long symbol. While this is not inherently bullish, it often indicates a return to the TBO Fast line, indicating the potential for a short-term recovery. The daily RSI has not dropped below 25 yet, but if it does, a recovery is expected within days.

Ethereum is leading the recovery

Ethereum outperformed Bitcoin yesterday, closing higher by more than 4% while BTC finished slightly in the red. ETH’s daily RSI has already reset, which could pave the way for a stronger rebound.

However, ETH/BTC remains bearish, as it continues to trade below the daily TBO cloud. The difference in ETH’s performance compared to BTC indicates an interesting market dynamic, with Ethereum potentially leading the way for altcoins.

Altcoin market rises as dominance changes

Altcoins, represented by OTHERS.D, rose significantly yesterday, closing up 4.88%. This reflects the strong interest in low- and mid-cap cryptocurrencies.

On the weekly chart, a TBO close is underway, a rare and historic bullish signal for OTHERS.D. The last time such signs appeared in a group was early 2016, which preceded a massive rally. While the current weekly candle still has several days to go before a close, this development underscores the building of bullish sentiment in the altcoin market.

The dominance of stablecoins and volatility indices

Stablecoin dominance paused at 5.6%, with the daily RSI hitting a new high in overbought territory. A rising Relative Strength Index (RSI) decline in the coming days could indicate a potential reversal, which would be bullish for Bitcoin and altcoins.

Meanwhile, BVOL7D, a key measure of Bitcoin volatility, is approaching the reversal zone. This could further support a market-wide recovery.

Forecast for the crypto market

The broader cryptocurrency market appears to be at a critical juncture. With Bitcoin showing early signs of reversal, Ethereum holding above key levels, and OTHERS.D hinting at a bullish breakout, there is optimism for the recovery to continue. However, key resistance levels and daily closing confirmations will determine the strength of this move. Right now, indications are that the cryptocurrency market is preparing for the next move higher.