The Bitcoin Dominance Rate (BTCD) has been moving upwards since completing a bullish pattern in January 2022.
In the period between May 2021 and Jan. 2022, BTCD bounced thrice at the 40% long-term support area.
In turn, this created a triple bottom, which is considered a bullish pattern.
The pattern was combined with a very strong bullish divergence in the weekly RSI. Such divergences often precede bullish trend reversals. In the first week of May, the RSI broke out above 50, something which is also considered a bullish sign.
If the ongoing upward movement continues, the closest resistance would be at 52.3%. This is the 0.382 Fib retracement resistance level.
BTCD breaks out
The daily chart shows that BTCD broke out from a descending resistance line on May 11. The move led to a high of 47.7% on June 8, which was a new yearly high.
The main resistance area is at 48.3%, a level that has not been broken since May 2021.
While the daily RSI has been overbought for 29 days, there is no bearish divergence in place yet.
So, while the weekly chart is bullish, the daily chart suggests that a rejection could occur close to the 48% resistance area.
Ethereum (ETH) is the largest altcoin ranked by its market capitalization. In turn, its movement greatly affect BTCD.
The weekly chart looks bearish, supporting the findings from the weekly BTCD chart.After deviating above the ₿0.0765 resistance area, ETH broke down from a long-term ascending parallel channel. Afterwards, the RSI moved below 50, providing another sign of a bearish trend.
If the downward movement continues, the closest support area would be at ₿0.044. This is the 0.618 Fib retracement support level.
For Be[In]Crypto’s latest bitcoin (BTC) analysis, click here.
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