- Bitcoin dominance hits 64.60% as traders eye a fake rally top, setting the stage for a powerful altcoin season later this year.
- A tactical short enters near $88.7K despite bullish bias, with flexible plans to switch long if NYO confirms breakout strength.
- Weekly chart formations and liquidity moves support a bullish BTC thesis, while altcoins prepare for a synchronized catch-up rally.
Bitcoin dominance ($BTC.D) has hit 64.60%, marking a potential top as altcoin season draws closer. Traders have closely watched for a sweep above the prior wick. That key move just occurred, confirming earlier expectations of a fake rally. Besides, high timeframe projections still support a bullish Bitcoin bias, strengthening the narrative for a coming altcoin breakout.
Bitcoin’s recent upward push is dragging $BTC.D with it. This aligns with prior forecasts that called for a $BTC-led rally. Moreover, the dominance surge mirrored the kind of high-liquidity moves expected on trending Bitcoin days. Traders now eye sideways Bitcoin action on the weekly chart. That would ideally support a slowing in $BTC.D growth, validating the failed auction thesis.
Price Action Aligns with Weekly Targets
On a broader scale, the weekly three-drive structure continues to shape up. Hence, the current fakeout above the wick may complete this formation. According to analyst Astronomer, this fake rally could precede a rapid fall in $BTC.D. Additionally, it sets the stage for the “grand altcoin catch-up,” which may unfold later in the year.
However, timing remains tied to Bitcoin’s breakout schedule. Astronomer projects that breakout to occur between late spring and early summer. Consequently, delays may cause temporary frustration but won’t alter the bullish structure. This delay only extends the time-based pain, not price-based losses.
Strategic Short While Bullish Long-Term
Meanwhile, Astronomer revealed a tactical short despite a strong bullish bias. He entered with only a quarter of his normal position size. The trade targets resistance around $88.7K, with a soft invalidation over $90K and a hard stop at $95K.
Besides, the plan includes another entry at New York Open (NYO), either today or tomorrow. If NYO proves strong both times, he will shift strategy. In that case, Astronomer plans to reposition for an early breakout long toward fresh all-time highs.
This calculated approach underlines the value of flexible trading amid macro trends. Hence, Bitcoin dominance could soon decline, opening doors for a strong altcoin cycle. Watch for key resistance zones and continued weekly momentum to confirm the upcoming shift.
