Bitcoin’s dominance rate (BTCD) continues to rise


  • 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.
BTCD Weakness


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.

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