Bitcoin Dominance Rate (BTCD) Continues to Rise
BTCD is close to 68% resistance.
Supports at 62.5% and 57.5% are observed.
The rate shows short-term weaknesses.
The dominance of rate Bitcoin Benefit increased significantly in the last three months. He 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 could take place before it resumes its upward movement.
Long-term levels of BTCD
BTCD has been rising since the end of August, after hitting a low of 57.21%. Its ascent continued above the 62.5% minor resistance zone, pushing the rate up to near its next resistance at 68%.
Technical indicators in the weekly data are bullish. MACD, RSI and Stochastic Oscillator are all on the rise. The Stochastic Oscillator also generated a bullish cross, and the MACD has just reached positive territory.
The long-term trend is therefore probably upward.
Cryptocurrency trader @TheEuroSniper shared a chart of Bitcoin’s dominance, saying the rate should show one last rise to 68% resistance before finally dropping steeply to 54%.
Its areas of support and resistance coincide with those we have highlighted. It is therefore a plausible scenario if the BTCD were to suffer a 68% rejection.
A possible rejection for the BTCD
The shorter-term, 12-hour chart supports the possibility of a rejection as it shows the BTCD completed a double top pattern. Both the RSI and MACD also exhibit bearish divergences.
Additionally, it looks like the BTCD has completed an extended third wave in a five wave bullish impulse. He is currently in correction in the fourth wave.
A plausible level for the end of the wave would be near 62.5%. This corresponds to the wave three 0.5 fibonacci retracement level, and the area of minor support mentioned earlier.