Bitcoin has fallen below a key support level, coinciding with a rise in the dominance of stablecoins to 11.03% and a decreasing Bitcoin dominance (BTC.D). Overall, market charts suggest a negative outlook for cryptocurrencies. Please remember this is not financial advice.
Bitcoin’s price decreased by 1.12% on Thursday, falling to a low of $72,582. It dropped below a previous support level of $73,309. According to a trader named MooninPapa on X (formerly Twitter), the next significant support level is around $70,466. This support level had already shown some weakness earlier in the week.
The Relative Strength Index (RSI) ended Thursday at 24.49, which is considered oversold. Historically, when the RSI has been this low, the price has initially risen before continuing to fall. A trader named MooninPapa on X (formerly Twitter) is waiting for the RSI to move back above 25 before seeing this as a reliable signal. It hasn’t reached that level yet.
Stablecoin Dominance Just Printed a Number Worth Watching
As a researcher, I’ve observed that stablecoin dominance signaled a potential buying opportunity (‘long’ position) on May 28th. It reached a recent high of 11.03%, and the four-hour trend indicator is starting to point upwards. According to MooninPapa’s latest market analysis, a key level to watch is 13% – that’s where I believe we might see more activity in altcoins and a good time to consider positioning ourselves.
In June 2022, stablecoins made up a peak of 16.743% of the cryptocurrency market before prices fell sharply. A trader known as MooninPapa pointed out that reaching 13% stablecoin dominance is just an initial indicator, not a definitive sign of a major market move. He explained on X (formerly Twitter) that it simply creates opportunities to look for promising alternative cryptocurrencies (alts), and doesn’t guarantee automatic profits.
On Thursday, Bitcoin’s share of the cryptocurrency market continued to decrease, confirmed by a technical indicator known as a TBO close long. This decline, coupled with rising stablecoin values, isn’t a positive sign for the overall market. Meanwhile, other cryptocurrencies (excluding Bitcoin and stablecoins) showed strong performance throughout the day, though they may be overbought, with an RSI reading of 69.47.
ETH Chart Still Has a Red Month Target in View
Ethereum continued its downward trend on Thursday, falling to a new low and staying below its daily trading range. The Relative Strength Index (RSI) reached 23.14, indicating strong selling pressure, and on-balance volume confirms a bearish outlook. According to MooninPapa on X, a short-term price increase to between $2,098 and $2,100 is possible, but the overall monthly forecast suggests a likely price drop, potentially reaching $1,776, with only two days remaining in the month.
TOTALES has initiated a short position based on a Time-Based Open (TBO) signal, which suggests a likely continuation of the current downward price trend. Previously, on April 14th, TOTALES opened a long position on the same chart after the price had already increased by 13%, and it continued to rise another 11% before showing signs of a potential reversal, as highlighted by MooninPapa.
TOTALE100 shared a chart on Thursday analyzing the performance of cryptocurrencies outside the top 100 by market capitalization. MooninPapa suggests waiting for the price to briefly dip before considering a short sale, but emphasizes this isn’t a reason to sell everything, just a reminder to be prepared to adjust your position.
TradFi Was Not Exactly Calm Either
The dollar index (DXY) started Thursday at 99.265 and ended the day down, closing a price gap. While the dollar index remains technically strong overall, its momentum is weakening as indicated by a declining RSI. Stock futures rose, and volatility, as measured by the VIX, decreased. NVIDIA stock is currently rebounding towards a key support level, according to a recent post on X.
Gold briefly dropped before finding some support. Silver remained stable. Uranium is nearing its initial profit target. Oil still has a price gap above its current level. It’s worth keeping an eye on these traditional markets, especially since there’s been increasing pressure in crypto driven by stablecoins over the past few weeks.
Looking at individual coins today, XLM really stood out with a 33% jump, but according to MooninPapa, it’s not one to chase right now. HYPE is still looking technically strong, though its momentum is starting to fade a bit. RENDER saw a 19% pullback, finding support at its fast line. INJ continues to present a clean, steady chart for dollar-cost averaging. TRX experienced a pretty significant volatility spike, with its RSI dropping from 61.81 to 36.48 in just one day – a rare move for a coin that usually trades within a narrow 2-3% range.
Looking at potential downsides, Cardano, CRO, and BONK all show bearish patterns on their daily and shorter-term charts. These patterns, along with a specific indicator for the overall market and recent stablecoin activity, suggest Bitcoin might be facing increasing risk of forming lower highs.
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2026-05-29 20:54