See More

Bitcoin Dominance (BTCD) Continues Slipping Back to Support Levels

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • The Bitcoin Dominance Rate is following an ascending support line.
  • There is support at 63.5% and 65.5%, and resistance at 68.5%.
  • Daily indicators are bearish but short-term signals are bullish.
  • promo

The Bitcoin Dominance Rate (BTCD) has been decreasing since Jan. 3 but is approaching a strong support level at 63.5%.

 

While a short-term bounce could occur, BTCD is expected to eventually reach this area.

Bitcoin Dominance Continues Slipping

BTCD has been falling since Jan. 3, when it was trading at a high of 73.63%.

The decrease has been swift, and BTCD has already reached the 0.5 Fib retracement of the entire upward move measuring from the Sept. 2020 lows, found at 65.44%. The next support area is found at 63.51%, the 0.618 Fib retracement level.

While BTCD is following an ascending support line, the exact slope of the line cannot be determined due to numerous long lower wicks.

Technical indicators in the daily time-frame are decisively bearish, indicating that the downward movement is likely to continue at least to 63.51%.

BTCD Ascending Support
BTCD Chart By TradingView

Short-Term Movement

The shorter-term chart is more bullish since there is a pronounced bullish divergence in both the RSI & the MACD. This suggests that an upward move is likely, at least in the short-term.

Nevertheless, BTCD is clearly still in a downward trend and will be in one until it reclaims the breakdown level at 68.5%.

BTCD Short-Term
BTCD Chart By TradingView

BTCD Wave Count

Cryptocurrency trader @TheEWguy stated that the price is in a bearish impulse and is expected to continue falling towards 63%.

BTCD Count
Source: Twitter

It is likely that BTC is in the C wave of an A-B-C corrective structure (shown in orange below), currently being in sub-wave 3 (black).

It does seem that BTCD is in sub-wave 3 as outlined in the tweet.

If waves A:C have a 1:1.61 ratio, which is common in such corrections, BTCD would reach a low of 62.5%, aligning with the 0.618 Fib retracement level outlined in the first section.

An increase above 68.2% would confirm that the correction has ended.

BTCD Wave Count
BTCD Chart By TradingView

Conclusion

While a short-term bounce is expected, Bitcoin Dominance is likely to resume its downward movement toward 62.5%-63.5%.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored