Bitcoin Dominance Rate Continues Tumbling as Altcoins Flourish

Share Article
In Brief
  • The Bitcoin Dominance Rate is between long-term resistance and support at 71.5% and 58.5% respectively.

  • Weekly indicators are neutral but short-term signals are bullish.

  • The ALTPERP trend is bullish but losing momentum.

  • promo

    Free Cloud Mining Providers to Mine Bitcoin in 2021

The Trust Project is an international consortium of news organizations building standards of transparency.

The Bitcoin Dominance Rate (BTCD) has been decreasing since a rejection at the beginning of the year. It’s now showing strong signs of a bullish trend reversal.

Sponsored



Sponsored

The Bitcoin Dominance Rate is expected to find support near 60% and initiate an upward move.

 

Bitcoin Dominance Long-Term Levels

BTCD has continued a descent that began with a rejection from the long-term 71.5% resistance area on Jan. 3, 2021.

Sponsored



Sponsored

Currently, the BTCD is approaching the 0.382 Fib support at 58.5%, an area that was the catalyst for the previous upward movement that began in September 2020.

Technical indicators are gradually turning bearish, but have not confirmed the trend reversal yet. This is especially evident by the fact that the RSI has crossed below 50. However, the MACD is above 0 and the Stochastic oscillator has yet to make a bearish cross.

BTCD Chart By TradingView

Future Movement

The daily chart provides a more bullish outlook.

The BTCD is at a very likely reversal area, found between the 0.618 and 0.786 Fib retracement levels between 60.7% and 63.5%. This is also a horizontal support area that caused a significant bounce at the end of November 2020.

Technical indicators have also turned bullish. The RSI has generated a bullish divergence, the Stochastic oscillator has just made a bullish cross, and the MACD has given a bullish reversal signal.

This suggests that the descent is reaching its end and the BTCD should soon move upwards.

BTCD Chart By TradingView

Shorter-term charts support this and indicate that another drop towards 60.70% is expected.

BTCD seems to be in the final sub-wave of an A-B-C corrective structure, and a target between 60.42% and 60.84% is found using Fib projections and external retracements.

BTCD Chart By TradingView

Altcoin Index

Cryptocurrency trader @Altstreetbet outlined an Altcoin Perpetual Index (ALTPERP) chart, stating that it’s likely to resume its upward movement in the near future.

Source: Twitter

Since then, the ALTPERP has broken out from the $1,680 resistance area and is now in price discovery.

The upward move was preceded by hidden bullish divergence in the RSI. However, both the MACD and Stochastic RSI are showing signs of weakness.

Therefore, while the trend is still bullish, it is gradually losing momentum.

ALT Chart By TradingView

Conclusion

The Bitcoin Dominance Rate is expected to soon find a bottom and initiate a bounce upwards.

While the Altcoin Perpetual Index trend is still bullish, it has begun to show signs of weakness.

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.
Sponsored
Share Article

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.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Free Cloud Mining Providers to Mine Bitcoin in 2021

Go

How To Mine Cryptocurrency: Beginner’s Guide

Let's Go