Exclusive Bitcoin Dominance (BTCD) Resumes Fall, Aims for New All-Time Low

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In Brief
  • BTCD is following a descending resistance line.

  • There are long-term support levels at 39.50% and 36%.

  • Weekly and daily technical indicators are bearish.

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The bitcoin dominance rate (BTCD) rebounded slightly on May 19 but has lost nearly all of its gains since then.

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Both the long and medium-term trends are firmly bearish, though a short-term bounce could transpire.

Long-term movement

The bitcoin dominance rate has been moving downwards since December 2020, when it reached a high of 73.63%. The decrease continued until May 19, 2021, culminating with a low of 39.66%.

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There are two main support areas at 39.50% and 36%. After bouncing from the former, the BTCD has returned to the level once more. The latter is the all-time low BTCD.

Technical indicators are bearish. The MACD is decreasing inside the negative territory and the RSI is below the 30-line. And while the Stochastic oscillator has stalled its decrease, it has yet to make a bullish cross nor move upwards. 

As a result, we can consider the long-term trend to still be bearish.

BTCD Chart By TradingView

BTCD follows descending resistance line

The daily chart shows that BTCD has been decreasing alongside a descending resistance line since January 2021. Most recently, it was rejected by the line on March 24.

Despite the previously outlined bounce, technical indicators are bearish.

The MACD has given a bearish reversal signal and is falling, the RSI is below 50, and the Stochastic oscillator has just made a bearish cross (red icon).

Therefore, the daily outlook aligns with the weekly signals, painting a bearish picture.

BTCD Chart By TradingView

While the short-term chart shows a descending wedge, which is a bullish pattern, all long-term signs point to a bearish trend. 

Therefore, a potential breakout from the wedge would likely only be a short-term bounce prior to another decrease.

BTCD Chart By TradingView

BTCD wave count

Cryptocurrency trader @24KCrypto outlined a BTCD chart, stating that it will likely continue decreasing towards a new all-time low.

Source: Twitter

The wave count does align with this reading, suggesting that BTCD is in wave C (white). The sub-wave count is shown in orange. However, it’s not yet certain if sub-wave four has ended or if it’s still developing. 

In any case, the ensuing downward movement could take BTCD all the way down to the range of 27.50%-25.40%. This target range is found using an external Fib retracement and Fib projection.

BTCD Chart By TradingView

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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