Good morning, crypto traders! The Crypto market remains near its intraday highs after the cooler-than-expected US PPI inflation data, which prompted traders to scale back expectations for further Fed rate hikes. Stocks are still holding up well, providing support for cryptocurrencies, but we should remain aware of the potential for a corrective pullback due to the ongoing summer trading range, especially if stocks experience a new corrective slowdown.
From a technical perspective, the Crypto TOTAL Market Cap chart may now be trading in wave (5) of an impulse, which confirms a temporary support in place. If this scenario is correct, the 2.2T area could become a region where a new corrective pullback develops before the broader recovery resumes. Alternatively, the market could already be advancing within wave C or wave 3, which would allow the rally to extend toward the 2.3T area if wave C unfolds, or even higher if wave 3 is in progress, particularly if stocks continue their rally.
Regarding crypto market dominance, the current structure continues to favor Bitcoin underperformance relative to altcoins. If the Crypto TOTAL Market Cap continues higher, we could see stronger recoveries across selected altcoins, while weaker projects may remain stuck in sideways consolidation if the broader market enters another corrective phase.
The BTC.D/OTHERS.D ratio remains within a corrective structure and appears to be approaching the potential completion of the projected wave 4. It is currently trading in the final stages of subwave (v) within wave c of an abc correction. A confirmed decline in the upcoming wave 5 would likely support further altcoin outperformance relative to Bitcoin, signaling that liquidity is continuing to rotate into stronger-performing assets.
If Bitcoin extends its recovery, leading altcoins could benefit from additional capital rotation and potentially deliver even stronger gains. The ongoing divergence between Bitcoin and altcoins suggests that liquidity is gradually shifting toward selected projects, while weaker assets continue to lag.
Another supportive signal is coming from the ETH/BTC cross, which has now broken above channel resistance. This breakout suggests that Ethereum and selected altcoins may continue strengthening relative to Bitcoin, supporting the possibility of a broader altcoin recovery in the weeks ahead.
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