Bitcoin Dominance Rate (BTCD) Fighting to Rebound After Falling From Local High

Bitcoin Dominance Rate (BTCD) Fighting to Rebound After Falling From Local High

The Bitcoin Dominance Rate (BTCD) is potentially in the beginning stages of a short-term reversal that could cause a strong upward move.

BTCD has been decreasing since Oct 20, after it reached a local high of 47.72%. However, it has seemingly found support at the 0.5 Fib retracement level at 43.60% and bounced.

Technical indicators are at a make-or-break level. The MACD is right at the 0-line and is close to crossing into negative territory. This means that the short-term trend is losing speed relative to the long-term one, and is considered a bearish sign. The previous time this occurred was in August 2021 right before a drop to 39.56%.

Similarly, the RSI is currently at the 50-line and could potentially fall below it. The RSI is a momentum indicator and crosses below 50 are often considered to be a switch from a bullish to a bearish trend.

However, the Supertrend is bullish (green line), so we can consider that daily technical indicators are leaning on bullish.

Future movement

Cryptocurrency trader @Murfski outlined a BTCD chart, stating that it seems shut to bottoming and an upward movem is anticipated to observe. 

As seen above, technical indicators within the each day time-frame present a really combined outlook. However, the six-hour chart is extra bullish.

BTCD is within the technique of bouncing from the assist line of an ascending parallel channel. As lengthy because the channel is unbroken, the short-term upward motion is bullish.

Also, each the RSI and MACD have generated bullish divergences. This implies that whereas BTCD values dropped, the lower turned weaker as an alternative of stronger. This motion sample typically precedes development reversals.

The two-hour chart exhibits sturdy resistance between 45.2%-45.7%. This is each a horizontal and a Fib resistance degree. 

If the BTCD manages to clear this resistance vary, it could possible transfer upwards at an accelerated tempo.

Has BTCD bottomed?

The long-term weekly chart exhibits that BTCD has bounced on the 39.50 horizontal assist space. The bounce was preceded by bullish divergence within the RSI. However, the RSI has now generated hidden bearish divergence. While the previous often precedes a bullish development reversal, the latter typically precedes bearish development reversals.

It stays to be seen if a BTCD enhance will invalidate this divergence. In any case, there’s a good distance to go till the development will be thought of bullish since BTCD has but to even attain the 0.382 Fib retracement degree at 52.65.

However, it does appear to be a short-term upward motion awaits.

For BeInCrypto’s newest Bitcoin (BTC) evaluation, click on right here.

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