Crypto Market Update: Bullish Divergences, Cloud Breakouts, and Why Bitcoin Is Leading the Charge

The crypto market is showing major signs of strength today — and despite feeling under the weather, I didn’t want you to miss what could be the early stages of a trend reversal. Let’s break down the key signals flashing across Bitcoin, Ethereum, stablecoin dominance, and the broader altcoin market.

This update is clean, quick, and packed with important technical insights.

BTC Surprise Pump + Bullish Signal

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Bitcoin Prints Another Bullish Divergence — A Repeat of 2022 and 2024 Signals

Bitcoin has now printed another TBT bullish divergence on the daily timeframe, something we’ve only seen a handful of times — all of which preceded significant upside.

We saw identical setups:

• March 2024 — two bullish divergences in a row → major push higher

• Jan–Feb 2022 — series of divergences → multi-week rally

This current setup mirrors those patterns closely.
The takeaway: this type of signal historically marks the beginning of multi-week uptrends.

I’m expecting four to five weeks of positive momentum — possibly longer — if the pattern continues.

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Key Breakout: Bitcoin Enters the Daily Cloud

This might be the most important development:

BTC is now inside the Ichimoku daily cloud.

If Bitcoin closes inside the cloud, it becomes a high-probability reversal signal, something we haven’t seen in months.

• The last attempt (Nov 26) was a scam pump that immediately faded.

• This attempt is backed by volume and RSI strength.

RSI closed at 53.58, which is a bullish sign showing strengthening momentum.

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Ethereum: New Uptrend Brewing, But Cloud Breakout Still Needed

Ethereum is following Bitcoin:

• RSI trending upward

• Stronger volume than previous weeks

• Price preparing to retest the moving average

However — ETH is not yet inside the cloud.
It needs follow-through volume to confirm a breakout and establish a sustainable uptrend.

Still, the structure looks promising.

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Stablecoin Dominance Prints Bearish Divergence — A Big Deal

This is massive:

Stablecoin dominance just printed a second TBT bearish divergence

— and fell 5% in one day.

If stablecoin dominance enters its own cloud, the market could be signaling a long-term reversal into risk-on behavior.

This would mean:

• Traders moving money out of stables

• Increased spot buying

• Strength returning to majors

• Foundation for an altcoin season later

Confirmation requires a close long on the indicator — but the setup is forming.

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Bitcoin Dominance Rising: BTC Is Leading, Not Alts

While stablecoin dominance drops:

Bitcoin dominance is rising.

This means:

• Bitcoin is absorbing most new liquidity

• Altcoins will lag temporarily

• Alts move after BTC trend confirmation

This same dynamic appeared:

• Oct 10

• Nov 4

• And during every BTC-led rally of past cycles

Alts will run — but later.
For now, this is Bitcoin’s move.

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Total Market Cap (Excluding Stables) Shows Bullish Divergence Too

Total crypto market cap (excluding stablecoins) printed another TBT bullish divergence, matching the exact structure we saw:

• March 2024

• Jan 2022

RSI made a higher high, confirming growing strength.

But for this to stick:

TOTAL must stay inside the cloud.

This is a tall order — but if it does, it signals a macro momentum shift.

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Gold vs Bitcoin: BTC Ready to Outperform?

PAXG/BTC printed a bearish divergence, signaling:

• Bitcoin may begin outperforming gold

• Rotation from safety to risk assets

• Return of speculative appetite

This hasn’t happened decisively in a long time — but the early signs are here.

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Altcoin Breakdown: Key TBO Signals to Watch

Here are today’s strongest setups across the altcoin market:

Strong Bullish Signals

• Quant (QNT) — valid TBO breakouts; watch for exhaustion.

• TRUMP — two TBO close shorts at support → previous rally: +40%.

• S&P token — first daily close short since October.

• COMP — daily TBO close short triggered.

• BNB — potential bump and run reversal pattern forming.

• SOL, ADA, LINK — cloud break attempts + bullish divergences.

• SUI — huge +21% daily candle.

• XMR — springboard bounce setup.

• ENA, WIF, VISION — bullish consolidation and follow-through.

Interesting Watchlist Setups

• Pendle — inside cloud; historically strong reversal structure.

• MANTA / PLASMA — oversold; waiting for green volume confirmation.

• COI — extreme volatility; excellent for short-term traders.

• FIL & ICP — identical structures; both at critical reversal zones.

• Orca — early reversal signals confirmed.

Riskier / Weak Structure

• DASH — bearish signals despite bullish market; only rallies if everything else rallies.

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The Bottom Line: This Rally Looks Real — But Early

Here’s the summary:

Bullish

✔ BTC & TOTAL printing multiple bullish divergences
✔ Stablecoin dominance collapsing
✔ RSI rising across the board
✔ Volume improving
✔ BTC recapturing the cloud
✔ Bitcoin outperforming gold
✔ Strong altcoin setups forming daily

Bearish (Still Macro)

✘ Macro trend still technically bearish
✘ Bitcoin dominance rising (alts lag)
✘ Not all coins inside clouds yet
✘ Need confirmation closes

What to Expect Next

In the next 4–5 weeks, expect:

• More Bitcoin strength

• Gradual altcoin rotation

• Stronger volume

• Pullbacks that get bought quickly

• Cloud breakouts confirming trend shifts

If momentum continues, this could mark the beginning of a multi-week reversal into early 2025.

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Stay Smart, Stay Disciplined

Market looks good. The signals are real.
But as always — stay in the green, manage risk, and let the charts guide you.