We haven't looked at BTC and USDT dominance for quite some time. #USDT Dominance has given the first signal that a decline has begun by closing the day below 6.97. Any upward moves from here should be viewed as mere reactions to the downtrend. This bearish outlook would be invalidated if the price closes above 9.36. A drop in USDT dominance indicates that investors are shifting capital into BTC or altcoins.
When we look at #BTC Dominance, bearish patterns have emerged; if it remains below 57, the decline is likely to continue. An analysis of the patterns forming in both dominance metrics suggests that a decline is the most probable outcome. This strengthens the likelihood of a rotation into altcoins.
Of course, I do not expect this to apply to *all* altcoins; I anticipate gains primarily for those with favorable charts, active teams, and solid projects.
#BTC US producer inflation data is due today; markets tend to tread cautiously on data release days and experience sharp volatility once the figures are announced. Therefore, short-term traders, in particular, should exercise caution.
As for BTC, the levels we are monitoring are clear: the potential for an upward move remains as long as the price stays above 76,300.
If a daily or weekly close occurs above 82,885, it would mark the first higher high relative to the most recent downward wave. This would provide a further signal that the uptrend is likely to continue, allowing us to monitor higher resistance levels thereafter.
If the price closes below 76,300, there is a possibility of testing the support zone around 67,000–66,000. Such a decline could form the final shoulder of a potential inverse head-and-shoulders (H&S) pattern. If the price subsequently holds above 83,000, the pattern would be activated, and a continued rise toward higher resistance levels would be expected.
#BTC remains unchanged, trading within the 81,478–75,545 range. The current structure reinforces the likelihood of a continued decline; notably, the rebound following the last downward wave failed to close above the previous peak.
If the price closes below 75,545, it may test the support zone around 67,000–66,000. These declines could potentially form the final shoulder of an Inverse Head and Shoulders (H&S) pattern.
Although a decline is anticipated, the possibility of a larger bullish Inverse H&S pattern is emerging. If the price holds above 83,000, the pattern would activate, and a continued rise toward upper resistance levels would be expected.
A daily or weekly close above 82,885 would mark the first higher peak relative to the recent downward wave, serving as a positive signal that the upward trend is likely to continue.