Bitcoin entered the bottom of its support range yesterday, making this an important inflection point for traders. The recent pullback brought BTC inside the daily TBO Cloud for the first time since November, signaling bearish consolidation.
However, demand remains evident as volume holds steady. BTC's drop of -11.73% over the past three days is more significant than mid-November's -9% pullback, yet still mild compared to the -18% to -28% pullbacks seen during the 2020 bull run. Weekly RSI has also dipped below overbought levels, leaving room for recovery should BTC bounce before the weekly close.
Ethereum and Altcoins Under Pressure
Ethereum's repeated rejections at the $4,000 resistance have proven costly, with a TBO Close Long printed on yesterday's daily candle. While daily RSI is nearing oversold levels—indicating a potential entry point—the broader trend remains weak, as ETH struggles to maintain bullish momentum.
Altcoins have been pummeled during this pullback, with many charts showing severe damage. However, OTHERS.D, which tracks smaller-cap cryptocurrencies, is showing early signs of a potential bounce as RSI resets from oversold levels. For altcoins to recover meaningfully, Bitcoin dominance (BTC.D) must reverse its bullish trend, which has yet to happen.
