Stock Market Signals Raise Crypto Concerns as BTC Faces Key Rejection

• Stock market warning signs suggest turbulence, impacting crypto as BTC faces key rejection at $95, confirming bearish divergence.
• BTC dominance remains high, delaying altcoin rotation; market risks mirroring 2013’s early top and 2018’s sharp downturn.
• Failed bullish confirmation and weak catalysts add to uncertainty; a sharp dominance drop may trigger sector-wide movement.

The stock market’s latest warning signs suggest potential turbulence ahead, raising concerns about the crypto market. Rick, a well-known analyst, previously mentioned that stocks could rally through April. However, bearish divergences are now flashing. 

Crypto markets appear to be following the same trajectory, especially given their correlation with equities. A key rejection at $95 adds to concerns, validating the bearish divergence. Additionally, Bitcoin dominance remains high, failing to drop as expected. This raises questions about market rotation and the potential for a shortened bear cycle.

Rick pointed out that similar patterns emerged in 2013. Despite expectations of a higher peak, the market faced an early top. His conservative projection of $105, based on the Elliott Wave Theory, proved accurate. 

Initially, he expected further upside towards $118K, but the trend flip on the weekly chart signals caution. The rejection at $95 reinforces the bearish case, with dominance remaining firm. While altcoins have not yet suffered major declines, the risk of rotation increases.

Potential Market Scenarios

The current setup mirrors the stock market’s 2018 cycle, which saw a brief but intense downturn. If this scenario unfolds, crypto could experience a shorter bear market rather than a prolonged correction. Despite disappointing price action, Rick acknowledges that if this was the cycle top, it aligns with the 2013 structure. While he has not sold his altcoins yet, he is reconsidering his stance. The persistence of BTC dominance suggests that market rotation has not yet begun. When it does, the impact on altcoins could be significant.

Additionally, recent catalysts, including market sentiment and macroeconomic trends, have failed to sustain bullish momentum. The failed confirmation of a bullish trend raises further concerns. However, a sharp dominance breakdown could eventually trigger sector-wide movements. Until then, the market remains in a precarious position.