Bitcoin briefly rose 4.8% from around $74,000, reaching a key technical level. However, analysts caution this might be a temporary move before the price potentially falls further, rather than a sign of a sustained recovery.
As a researcher tracking Bitcoin, I’ve observed a concerning pattern. Bitcoin briefly touched a technical level – what we call the ‘TBO fast line’ – on Monday after finding support around $74,000 on Saturday. This happened for the first time since October 10th, and historically, it suggests the recent price increase is likely nearing its end. It’s not a positive signal; I’m interpreting it as a caution flag.
Trader MooninPapa, in a recent post on X, pointed out that a ‘fast line tag’ often appears just before the price of an asset declines. He highlighted this in his daily market video, explaining it’s a signal of an upcoming drop. Additionally, on-balance volume is currently weak, with the blue line staying below its average – a pattern also seen in December and January, right before Bitcoin experienced a 15% drop over a few days.
$76,140 Support Fan Is the Next Test Nobody Wants
The $76,140 support level is now being closely watched, and trader MooninPapa believes it likely won’t hold. There are already signs of weakness in the short-term price action. The price briefly dropped below $75,000, potentially leading to further price drops as it tests support levels that haven’t been challenged in weeks.
If you’re optimistic about Bitcoin’s price, keep an eye on the Relative Strength Index (RSI). A rise above 25 could signal a buying opportunity, as one trader noted on X. The last time this happened, around $70,000 in late January, the price went up – that trade is still currently profitable. However, a similar setup at $88,000 didn’t result in a profit.
Bitcoin’s price chart has been weakening since early this month when a key technical pattern failed. As we previously discussed, the recent upward trend in Bitcoin’s lowest prices now hinges on holding above $76,140. Additionally, an increase in stablecoin dominance – now around 11.844% – suggests investors are moving money out of the market and waiting to see what happens next.
ETH’s Bear Flag Measures a Drop Most Won’t Acknowledge
As an analyst, I’ve been watching Ethereum closely, and it broke down through a bearish flag pattern over the weekend. We’ve already seen price move below key support levels, and now it’s back at that same level – a typical ‘retest’ of the breakdown in this pattern. I’m now looking for signs of rejection at this level, which would confirm the continuation of the downward trend.
The potential price drop is significant. MooninPapa, on X (formerly Twitter), explained a method for estimating it: measure the distance from a recent high to a low point, then project that same distance downward from the current price. This calculation suggests a price around $1,065, which is about 49% below the price of ETH when the analysis was done. He believes this possibility remains valid.
Ethereum has been in a strong downtrend since April 15th, according to the TBO indicator, which signaled this when the price fell below a key level. While there were temporary price increases of 23% to 27%, the overall downward trend remained dominant, as highlighted by MooninPapa in a recent video. The indicator’s slow line continues to point downwards, confirming this bearish outlook.
Alts Getting a Warning While Stablecoins Quietly Climb
TOTAL100.D, which represents all cryptocurrencies outside the top 100 by market capitalization, recently showed a bearish trend reversal signal on Sunday. This usually suggests that traders who are currently profiting from long positions should consider selling. As expected, the price peaked on Monday and then declined, providing a clear opportunity for those traders to take profits.
According to MooninPapa on X, both OTHERS.D and OTHERS/BTC are displaying bearish divergences, meaning the price is rising while momentum (as indicated by the RSI) is falling. He noted that the OTHERS chart is showing lower highs in the RSI despite higher price highs, which he considers a bearish signal. He’s identified two confirmed bearish divergences on OTHERS/BTC. He says that three or more of these divergences would strengthen the signal.
Looking at specific trades, MooninPapa was mostly bearish. While $RENDER increased by 25%, its momentum appears to be weakening. $DEXE and $VVV are still showing strong bullish signals and could be good buys during small dips. $INJ rose by over 10%. He opened short positions on $MU, $WIF, and $CHZ, expecting their prices to fall. $PI is approaching $0.1346. $TON had a quick 25% jump, possibly due to a short squeeze, but is now declining. $HYPE is showing bearish signals and could pull back, with a potential entry point near $51 if it rebounds. Bitcoin’s dominance is consolidating in a bearish pattern, and its future direction will indicate whether alternative cryptocurrencies have room to grow.
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2026-05-26 21:51