Bitcoin closed up 2.56% on Thursday and flashed an early reversal signal for the first time since mid-May, while Ethereum went further and reclaimed a key technical zone. According to Kitco commentator Aaron Dishner, the broader crypto rotation is broadening, though the setup still needs confirmation.
Bitcoin has finally produced the reversal ingredient traders were waiting for. The coin closed up 2.56% on Thursday, printed a daily bullish divergence, and tagged its daily fast line — the first time its on-balance-volume line has closed above its moving average since mid-May, per Kitco commentator Aaron Dishner.
That combination matters because it pairs price with momentum and volume. But the move is not yet a clean trend reversal. The last three similar fast-line tests were rejected, and Bitcoin remains bearish below its daily cloud, so the market still has to prove this attempt is different.
Ethereum gives the cleaner signal
Ethereum did what Bitcoin has not. It printed a bullish divergence and closed inside its daily cloud for the first time since May 15, confirming a bullish on-balance-volume cross. The weekly chart also shows a bullish RSI reset in progress, though Dishner notes it has not confirmed yet.
That makes Ethereum one of the cleaner charts in the analysis, because it is no longer only testing a reference line — it has moved back into the cloud.
Rotation broadens across the market
Capital appears to be shifting out of safety. Combined stablecoin dominance fell into its daily cloud, a move Dishner reads as potentially bullish for crypto risk assets if it reflects money rotating back into Bitcoin, Ethereum, and altcoins. He compared it with a June 15 setup, when a similar break preceded a short-term bounce before the market fell again.
Breadth improved elsewhere too. ETH dominance closed up 2.99%, while total-market charts printed bullish divergences. Dishner frames this not as a guaranteed altcoin season but as a classic rotation sequence: larger coins first, then capital potentially flowing toward lower-cap names later.
Macro adds a wild card
The dollar side of the picture turned quickly. The DXY closed down 0.56% with a bearish divergence. Around the same time, USD/JPY dropped 0.91% and ended a nine-bar overbought RSI streak.
Dishner noted the yen move was apparently not direct Ministry of Finance or Bank of Japan intervention, but a reaction to communication that future intervention timing would not be publicly announced the same way. That may explain why markets were rattled even as the VIX stayed calm.
Among altcoins, breadth strengthened but caution remains. WLD bounced 21% from long-term support, yet Solana pushed to the top of its daily cloud, which Dishner flagged as a profit-taking zone for longs. Traders should respect the bullish evidence without forgetting to protect profit into resistance.
Source: KITCO
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