Overbought crypto meets a buy-the

My August 28 read keeps strength and exhaustion in the same frame: BTC and ETH are overbought near meaningful resistance, stablecoin dominance confirms a bullish crypto backdrop, DXY remains bearish, Gold has a conditional support test and SOL’s surge carries an exhaustion warning.

<a href="https://xpertsstudio.com/capital-b-raises-e21-million-to-expand-bitcoin-holdings/” title=”Capital B Raises €21 Million to Expand Bitcoin Holdings”>Bitcoin slows into three resistance zones

I see BTC’s new local high at $81,478 slowing as it approaches TBO Resistance at $81,788, long-term support that remains resistance until tested near $82,500 and May’s wick cluster. Daily RSI is on a confirmed nine-day overbought streak, with lower RSI highs against higher chart highs. OBV and Volume are still bullish; Volume has decreased slightly but still outperforms its yellow MA. Jackson Hole is a possible source of change, not a confirmed catalyst, and I do not claim the U.S. government is pumping crypto.

Ethereum‘s strength carries an exhaustion warning

I see ETH confirm a Thursday TBO Breakout in a terrible location: very high and late. RSI is also on a nine-day overbought streak. Volume and OBV remain bullish and the weekly chart is strong bullish, but I still classify the Breakout as obvious exhaustion. In the current euphoria I struggle with shorting ETH, so exhaustion is a warning rather than an invented immediate short entry.

Stablecoin dominance confirms crypto’s bullish backdrop

Combined stablecoin dominance daily chart

I see combined stablecoin dominance confirm a close below TBO Support. That is a strong bearish trend for the dominance chart and therefore a strong bullish uptrend signal for crypto. We are due for a pullback, but continuation higher looks more likely than a massive surprise pullback. STABLE.C.D also confirmed a Thursday TBO Breakdown and is building another; because these printed after the breakdown while the chart is deeply oversold, I read them as exhaustion breakdowns more likely to predict a bounce than another drop. Dominance is market share, not spot price.

DXY remains strong bearish below the Cloud

I still see DXY strong bearish below its Cloud, and it has yet to tag the daily Fast line. I ultimately expect it to move much lower toward 96. I do not know whether Friday’s Jackson Hole comments will start that move, so I preserve the target as my expectation and the event link as unconfirmed. If DXY drops, EURUSD should move up and USDJPY should follow down, but I do not call USDJPY safe until a close below 155.025.

Gold’s pullback needs its own confirmation sequence

I think Gold will begin a pullback to newly broken resistance. That level should be confirmed as support once price bounces from it: the pullback is the expectation, while the bounce is the later support-confirmation object. Weekly RSI is only in progress of printing a bearish RSI Reset on an unfinished weekly candle. If it confirms, Silver and Platinum are expected to follow; Copper is separately expected to bounce.

SOL’s surge looks like an exhaustion Breakout

I see SOL pump nearly 7% on Thursday and print a TBO Breakout on the move. That looks like an exhaustion Breakout to me, not a guaranteed reversal or an immediate short entry. The broader is very strong bullish, even while OTHERS.D, TOTALE50.D and TOTALE100.D remain strong bearish dominance charts. I keep market-cap state and market-share state separate

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Aaron Dishner

Co-founder and lead instructor at The Better Traders, Inc., an international crypto education company, and owner of the popular crypto bot trading YouTube channel Moonin Papa, Aaron Dishner serves over 25,000 students across 36 countries as a world-leading bot trader and crypto day trading and swing trading expert. Combining his passion for educational excellence, stemming from a professional teaching background, with his remarkable skill set in crypto trading, Aaron’s mission is to make trading safe and accessible so anyone can learn to benefit from the greatest financial revolution of our time.

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