BTC prints a bearish engulfing candle near $80K as stablecoin dominance spikes and ETH weakens. Bears may be taking the wheel this May.
BTC finally pulled back. After the recent push higher, it printed a bearish engulfing candle and dropped back toward Monday’s close. That close landed near $80K.
The pivot-high warning is confirmed, according to MooninPapa on X. That does not mean the entire move is done. Not automatically.
One Candle Does Not Kill a Rally. Two Might.
Bulls need BTC to hold the fast line. They also need RSI to bounce from support. Bears want something else entirely. They want a confirmed close below the 4H cloud and a deeper move back into bearish consolidation.
Stablecoin dominance jumped from the 8% area toward 10%. That chart is the bigger warning right now. Per MooninPapa on X, if stablecoin dominance closes above 10.45% and then confirms above the cloud, the bearish May and June scenario becomes much harder to dismiss.
ETH is weaker than BTC. It closed below the fast line. It failed to clear TBO resistance. MooninPapa flagged on X that ETH is likely heading toward the bottom of the daily cloud near $2,225. For an asset that usually leads rallies, that positioning is telling.
Stablecoin Dominance Surging: The Signal Nobody Wants to Talk About
BTC dominance remains technically bullish. That part still holds. But stablecoin dominance is the chart that’s flashing now. Cash sitting on the sidelines tends to mean one of two things. The money is waiting for a better entry. Or it is preparing to exit entirely.
TOTALES pushed above TBO resistance and made a new pivot high. RSI is overheated. A close below the fast line would likely push total market cap toward the $1.9T support area, per MooninPapa’s read on X.
TOTALE100 still looks strong. The broader altcoin index, however, failed to close above TBO resistance and may pull back toward the fast line around $185B. The two charts are not telling the same story.
TradFi Is Not Helping
DXY is still respecting resistance. USDJPY is showing what looks like intervention pressure. Equities, per MooninPapa on X, remain frothy. VIX is still bearish. Oil is weakening.
Gold and silver are the cleaner buy-the-dip candidates right now. Both still have slow lines pointing higher. They are not crypto, but the rotation is not subtle.
The watchlist is full of extended charts. SOL, LINK, DOGE, ICP, ALGO, TON, and several others all share the same underlying theme, even if setups differ. Respect the trend. Take profits into strength. MooninPapa said it plainly on X: do not chase vertical candles without a plan.
This may not be the full pullback yet. The data, though, keeps pointing the same direction.
Disclaimer: This article is based purely on technical analysis and market observations. It does not constitute financial or investment advice.
