- The BTCD is close to the 68% resistance.
- Supports at 62.5% and 57.5% are observed.
- The rate shows short-term weaknesses.
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Bitcoin’s dominance rate (BTCD) has increased significantly in the last three months. It is now on the verge of reaching a significant resistance zone.
That said, the rate has begun to show some weakness, indicating that a short-term decline may occur before it resumes its upward movement.
Long-term levels of the BTCD
Cryptocurrency trader @TheEuroSniper shared a chart of Crypto Trader dominance saying that the rate should show a final rise to the 68% resistance level before finally dropping sharply to 54%.
Bitcoin Dominance Chart
Its areas of support and resistance coincide with those we have highlighted. It is therefore a plausible scenario if the BTCD were to undergo a 68% rejection.
The BTCD has been on the rise since the end of August, after reaching a low of 57.21%. Its rise continued above the 62.5% minor resistance zone, bringing the rate up to near its next resistance level of 68%.
Technical indicators in the weekly data are bullish. The MACD, RSI and Stochastic Oscillator are all rising. The Stochastic Oscillator has also generated a bullish cross, and the MACD has just reached positive territory.
The long term trend is therefore likely to be upward.
BTCD Long-Term Movement
A possible rejection for the BTCD
The shorter term, 12-hour graph supports the possibility of rejection as it shows that the BCDB has completed a double peak pattern. Both the RSI and the MACD also show bearish divergences.
In addition, it appears that the BTCD has completed a third extended wave in a five wave bullish momentum. It is currently reportedly correcting in the fourth wave.
A plausible level for the end of the wave would be close to 62.5%. This corresponds to the 0.5 fibonacci retracement level of wave three, and to the minor support zone mentioned above.
Knowing that ETH is the most important of all altcoins, a rise in the ETH/BTC price generally tends to lead to a fall in the BTCD.
The ETH/BTC pair is approaching a solid support zone at 0.0255₿, which could reverse the downtrend. Technical indicators support such a move, as the RSI is poised to generate bullish divergence, and the Stochastic Oscillator has formed a bullish cross.
This movement would be consistent with a final rally of the BTCD, before the highs enter a form of relief rally.
ETH Technical Indicators
In conclusion, the BTCD could fall in the short term, leaving room for the altcoins, before finally resuming its upward movement.
Warning: Crypton trading is a high risk business and may not be suitable for all investors. The opinions expressed in this article do not reflect those of BeInCrypto.