Regarding dominance in the crypto market, the BTC.D/OTHERS.D ratio continues to point higher, suggesting that the ongoing recovery is being driven primarily by Bitcoin. This may continue, as wave 5 could still be incomplete. At the same time, the Crypto TOTAL market cap chart is also pointing higher, suggesting that further gains in Bitcoin could continue to support the broader altcoin market as well.
Despite the recent recovery in Bitcoin and the broader crypto market, we are not in ALTseason yet. However, if the crypto market remains in strong recovery mode, an altcoin season could emerge once the BTC.D/OTHERS.D ratio completes its fifth wave. In any case, keep in mind that some altcoins may begin breaking higher earlier than others.
Despite Bitcoin continuing to outperform altcoins, ETHBTC continues to move nicely higher, as anticipated, with Ethereum also showing relative strength. However, since ETHBTC may now be completing wave "v" of an impulse within wave A/1, and with Bitcoin still dominating the market, we could see a corrective setback in wave B/2 before the uptrend resumes into wave C/3.
Notice that despite Ethereum's strong recovery, the ETHUSD Longs/Shorts ratio is quickly moving back toward the lower end of its range, indicating that speculators are still not particularly bullish and remain heavily positioned on the short side. However, this move back toward the lower end of the range could actually be supportive and bullish for Ethereum, as excessive short positioning may provide additional fuel for further upside.
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