Bitcoin has been the face of the crypto world for a long time; however, recent market movements suggest that BTC might be showing signs of caution, or as some say, “flashing red”. At the same time, altcoins, the other cryptocurrencies out there, are quietly gathering steam and getting ready to make their move.
It’s an interesting moment because while BTC looks like it might slow down, altcoins are gearing up for what could be an exciting breakout.
For anyone watching the market, it’s hard not to wonder: are we about to see altcoins take the spotlight for a while? The next few weeks could bring some surprises and shake things up in the crypto scene.
Crypto analyst Josh from a YouTube channel named CRYPTO WORLD has spotted a warning sign on Bitcoin chart. This signal has already made him exit his long position. While BTC may face short-term weakness, several altcoins are showing strength and could outperform in the near term.
The drop in Bitcoin dominance suggests that capital is flowing toward altcoins. Even if some experience brief pullbacks, their overall performance remains strong compared to BTC.
Bitcoin Warning Signal and What It Means for Altcoins
On the BTC chart, a bearish divergence has been developing for months. This points to the possibility of another pullback after one last bounce. The shift could give altcoins like Ethereum, Solana, XRP, and Chainlink more room to climb.
Josh pointed out a major bearish divergence on the weekly Bitcoin chart, which suggests that over the next few months, a timeframe stretching into September and October, BTC could experience a significant pullback or at least a slowdown.
Ethereum Price Levels to Watch
On the three-day chart, Ethereum larger trend remains bullish despite a short-term pullback. As long as price stays above $3,900 to $4,100, the uptrend is intact. The all-time high is near $4,900, and a push to $5,000 could happen in the coming weeks, especially if BTC bounces first.
A daily chart warning is also forming, with higher highs in price but lower highs in the RSI. The last two bearish divergences in Ethereum led to pullbacks lasting one to two weeks. If confirmed by two red daily candle closes, traders may see a shorting opportunity.
Read also : Litecoin (LTC) Could Outperform Many Altcoins This Bull Run: Here’s Why
On the ETH/BTC chart, there is also a possible bearish divergence, but it’s not confirmed. Since Bitcoin dominance is falling, Ethereum is likely to keep outperforming BTC in the near term
Resistance Walls Test Solana, XRP, and Chainlink
Solana attempted to break above $190 to $200 on the two-day chart but failed to confirm the move. A close above $200 could open the path to $230, but until then, SOL price action may mirror Ethereum bullish overall yet facing short-term resistance. Key supports sit at $181 to $182, $167, $156, and $143 to $146.
Ripple weekly chart has confirmed a bearish divergence, hinting at slowing momentum. This does not signal an immediate crash but could lead to softer price action over the coming months. Price remains capped under heavy resistance at $3.35 to $3.40, with support levels at $3.00, $2.90, $2.75, and $2.55 to $2.62.
Chainlink Price has cooled after rejection at $24 to $25 on the daily chart, with price likely to move sideways between $21 and $25. A drop below $20 to $21 would be bearish, potentially targeting $17.50 to $18. A bearish divergence on the RSI, similar to late 2024, suggests the risk of a multi-week pullback.
BTC warning signal could mark the start of a short-term shift in momentum. If Bitcoin dominance keeps falling, altcoins like Ethereum, Solana, XRP, and Chainlink could push higher. However, traders should also watch for short-term bearish divergences, which may bring brief pullbacks before the broader bullish trends continue.
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