The market generally gives a feeling of a pullback

Short positions in Bitcoin are very active, but BTC has remained strong, just consolidating on the daily chart. Altcoins have only seen brief spikes followed by pullbacks, and there are no signs of a trend reversal yet.

The biggest change in the past few days is that BTC.D (Bitcoin's market cap dominance) has started to reverse and decline on the daily chart. The last time this signal appeared was on November 21 of last year. On November 7, after Trump's victory, BTC began to surge violently, continuously breaking historical highs, meme coins surged from the bottom, doubling in just a few days, but around November 20, the meme rally fizzled out, and the old VC began to push up, which continued until December 19.

Do you feel that this is very similar to recent sentiment? Starting from April 7, BTC began to rally, continuing to rise, followed by meme coins, which saw their average bottoms rise by two to three times.

It is very likely that, going forward, meme coins will struggle to gain momentum, and popular application coins among VC coins will start to rally. Because TOTAL3 (the total market cap of altcoins) has just begun its K-line movement, BTC.D has risen for one to two years and is just starting to correct. Next, we should focus on finding application coins that show signs of rallying.

However, BTC will definitely correct at some point, and that will be the opportunity for the trapped shorts to exit. It's wiser to cut losses early and go long than to remain stuck without action.