The altcoin market is showing signs of a necessary pullback for a healthy upward continuation. Rushing too aggressively to the upside at this stage could simply be a liquidity hunt. Once BTC dominance establishes its base, we’re likely to revisit around the 61% Fibonacci retracement zone.
Currently, we are approaching a critical setup:
BTC showing bearish signs
BTC Dominance (BTC.D) moving upward and nearing oversold conditions
Altcoin Market Cap entering overbought territory
Historically, when BTC.D rises while the altcoin market cap is overheated, we often witness a rotation of capital back into BTC, leading to corrections in alts.
⚠️ Patience is key. In such market phases, impulsive entries can lead to unnecessary drawdowns. Waiting for confirmations can give you a better edge in capturing the next major move.
