Bitcoin Dominance Rate (BTCD) Falls as Altcoins Boom
The Bitcoin Dominance Rate (BTCD) has fallen since it rejected the 48% resistance area and is showing bearish signs in the weekly and daily time frames.
In the period between May and December 2021, BTCD created a triple bottom pattern within the 40% long-term support area. The triple bottom is considered a bullish pattern, meaning it leads to breakouts most of the time.
Furthermore, the pattern was combined with bullish divergence in the weekly RSI (green line).
This initially led to an upward movement that took BTCD to a high of 48.45%. However, the 48% area initiated a rejection (red icon) and the Bitcoin dominance rate has fallen since.
An interesting development is that the trend line of the divergence (green line) has now broken, and the RSI has fallen below 50.
Both of these are considered signs of bearish trends, meaning they could lead to lower prices. So this could mean that BTCD will fall towards the 40% support area and potentially break down.
Future movement
Cryptocurrency trader @Eliz883 tweeted a chart of BTCD, stating that it is trading just below resistance at 43%.
Since then, BTCD has broken down from a rising support line and validated it as resistance (red icon) afterwards. This is a bearish sign that supports the bearish readings from the daily timeframe.
Additionally, the daily RSI is below 50, which is another sign of a bearish trend.
As a result of these measurements, a decrease of at least 40% is expected.
ETH/BTC
ETH broke out of a rising parallel channel in early May and went on to hit a low of ₿0.049 in June. However, it retook the 0.056 support area afterwards and is in the process of regaining the support line of the channel.
Furthermore, the weekly RSI is about to move above 50 and has broken out of its bearish divergence trend line (green line).
If ETH were to regain the support line of the channel, the trend would be considered bullish.
For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here
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