BTC Dominance Level Not Ready for Major Breakout

BTC Dominance Level Not Ready for Major Breakout

ATTENTION !! HUUGE WARNING TO ALL ALTCOIN HOLDERS IF BTC DOMINANCE BREAKS THIS KEY LEVEL!!

Contents

BTC Dominance Level Not Ready for Major Breakout
CONTENT

  • BTCD follows the line of descending resistance

  • Technical indicators paint a mixed picture

  • BTCD will soon face resistance

BTC Dominance Level Not Ready for Major Breakout

International consortium of news organizations, developing standards for transparency.

Bitcoin dominance (BTCD) has been growing throughout the week, but has not yet broken through key resistance.

BTCD peaked at 73.02% in September 2019 and has been declining since then, following the line of downtrend resistance.

The dominance level dropped below 62%, which twice acted as resistance (in 2018 and 2019), and in January of this year played the role of support.

BTCD at a crossroads

If BTCD fails to return beyond this level, it will mean a return to the previous range with the prospect of falling to 53%.

Technical indicators provide some reversal signals. Weekly RSI indicates the presence of bullish divergence and is in the oversold zone. Last time the indicator signaled divergence (bearish), BTC dominance level peaked at 72% and moved down.

However, MACD and Stochastic Oscillator do not allow us to talk about a reversal.

BTCD Chart by TradingView

Strong resistance ahead

Cryptocurrency trader @ anbessa100 tweeted a chart showing that bitcoin’s dominance has been heading north since hitting a 59% low last week. However, after facing resistance, the trader predicts a fall in BTCD.

BTC Dominance Level Not Ready for Major Breakout

Source: Twitter 

Bitcoin’s dominance level follows the line of shorter-term downtrend resistance that formed in May. Here is the 50-day moving average, from which so far the dominance level has rebounded five times..

Technical indicators paint a mixed picture. The Stochastic Oscillator has formed a bullish crossover and continues to rise, but similar movements over the past couple of months have never led to a significant rise in MACD. RSI, meanwhile, is giving hidden signals of bearish divergence.

Thus, there are currently no sufficient indicators of a potential reversal.

BTCD Chart by TradingView

Correlation with the BTC rate

The shorter-term charts show a less optimistic picture. BTCD began to decline after the appearance of bearish divergence signals from the RSI side. MACD is also moving south, while the Stochastic Oscillator has formed a bearish crossover.

If the 0.618% Fibonacci retracement of the relatively recent rally (60.10%) fails, the chances of a resumption of rally will decrease sharply, while the loss of the 59% level would confirm a bearish move..

BTCD Chart by TradingView

After a sharp fall in early September, BTCD was gradually declining, while the bitcoin rate was mostly strengthening. However, as the rate of rise of BTC accelerated, the level of dominance began to rise..

This is a common occurrence when sharp movements in Bitcoin provoke a rise in BTCD, while the consolidation of the first cryptocurrency is putting pressure on the level of dominance..

The dynamics of the bitcoin rate are indicated in blue on the chart below:

BTCD Chart by TradingView

so, level of dominance of bitcoin may soon reach resistance, after which it will make a bearish reversal.

Disclaimer

All information, contained on our website, published on the principles of good faith and objectivity, and for informational purposes only. The reader bears himself full responsibility for any actions, committed by him on the basis of information, obtained from our website.

Share Article

Share