Exclusive Bitcoin Dominance (BTCD) Drops to Lowest Levels Since 2018

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In Brief
  • Bitcoin dominance has support at 43.5% and 39.5%.

  • Long- and short-term technical indicators are bearish.

  • BTCD has reached its lowest level since June 2018

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The bitcoin dominance rate (BTCD) has fallen below numerous long-term support levels, reaching its lowest value since 2018.

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The BTCD rate is expected to continue moving downwards to eventually reach the closest support level at 39.5%.

Long-term BTCD decrease

BTCD has been moving downwards since it reached a high of 73.63% in December 2020. Since then, it has decreased by a full 30%.

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The rate of decrease really accelerated once a breakdown from the 53% area occurred. Previously, this level had been acting as support since August 2018.

Currently, BTCD is at the 0.786 Fib retracement support level, found at 43.51%. The next support below it is a horizontal level found at 39.5%. This area not been reached since early 2018.

Technical indicators in the weekly time frame are still bearish. The MACD is negative, the RSI has fallen below the 30-line and the Stochastic oscillator has made a bearish cross.

Therefore, the long-term trend is still considered bearish.

BTCD Chart By TradingView

Failed BTCD reversal

The daily chart does not provide any clear bullish reversal signs.

The MACD has invalidated a potential bullish reversal signal with a lower momentum bar. And, while the RSI has been oversold for a full 42 days, it has not generated any significant bullish divergence yet. Similarly, the Stochastic oscillator has not yet made a bullish cross.

Therefore, the daily chart readings align with those from the weekly time frame, indicating that the trend is still bearish. As a result, further decreases are expected.

BTCD Chart By TradingView

The two-hour chart also provides bearish readings. Both the MACD and RSI are decreasing. The latter is close to breaking down below 30.

BTCD Chart By TradingView

Conclusion

The bitcoin dominance trend is still bearish, indicating that the rate could continue decreasing towards the next closest support level at 39.50%.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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