There are no major changes in the crypto market, which has remained relatively slow since yesterday. However, we are getting some interesting US PCE inflation and GDP data today, which could have an impact on the markets, although perhaps not too much ahead of Friday’s NFP (US jobs) report.
Despite some risk-off flows, the crypto market is still holding up quite well. However, we should remain aware of a potential ABC slowdown unless this is simply a smaller corrective pullback within the ongoing extended leg.
The Crypto TOTAL market cap chart appears to have completed wave 5 of an impulse. Therefore, similar to Bitcoin, we should watch for a potential ABC retracement back toward the 2.5T support area. If the market suddenly extends the rally toward the 3.0T area, driven by stronger altcoins, we may instead consider an extended wave 5 or even wave 3. In that case, an altseason could become even more probable.
The BTC.D/OTHERS.D ratio, which compares Bitcoin dominance with altcoin dominance, is already breaking an important trendline. This suggests that altcoins could continue to outperform Bitcoin. Some altcoins could therefore extend even higher even if Bitcoin only consolidates, although others could still see deeper pullbacks if Bitcoin starts a larger correction.
The TOTAL3ESBTC chart, which represents the ratio of the total crypto market cap excluding BTC, ETH, and stablecoins relative to Bitcoin, is also breaking above the upper triangle trendline on the daily chart. This could signal more upside within wave C or wave 3, potentially opening the door for altcoins to significantly outperform Bitcoin. We may even see a short-term altseason now that the broader crypto market has entered recovery mode. Interestingly, the monthly TOTAL3ESBTC chart is also showing a favorable cyclical period for a potential new short-term altseason.
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