Bitcoin btc
$ usd

Bitcoin Dominance Rate in a ‘Make or Break’ Position

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

In Brief

  • The Bitcoin dominance rate appears to be close to breaking down from an ascending support line.
  • A bearish cross has transpired between the 50 and 200-day MAs.
  • BTCD is following a longer-term descending resistance line.
  • promo

The Bitcoin dominance rate (BTCD) is trading at a long-term ascending support line that has been in place since the beginning of February.
Technical indicators suggest that the BTCD will break down from this line.

Ascending Bitcoin Support Line

The Bitcoin dominance rate has been following an ascending support line since Feb 14. At the time of press, it was trading on top of his support line and has been clinging to it since June 1. The fact that the rate has been touching the support line so many times but has yet to initiate a bounce makes a breakdown more likely. Furthermore, a bearish cross has transpired between the 50 and 200-day MAs, a sign that a bearish trend has begun. Both MAs are sitting just above the trading range and offering resistance to the rate. The fact that the cross is transpiring after a previous failed bullish cross makes a breakdown even more likely. Finally, the daily RSI failed to even reach the 50-line and is moving downwards.
Bitcoin Dominance Rate Ascending Support Line
BTCD Chart By Tradingview
Well-known trader @damskotrades stated that he is cautious with his altcoin plays because of the fact that the Bitcoin dominance rate is trading at an important support level, more specifically the ascending support line we just discussed. He gave three main observations:
I’m cautious with my Altcoin plays. – Less risk per trade – Less Altcoin set ups open in the long category at the same time. – Focus on higher time frame levels
Source: Twitter
However, due to the reasons discussed above, we believe that it is more likely that BTCD breaks down instead.

Long-Term Resistance

The weekly chart shows that the BTCD has been following a descending resistance line since September 2019. This indicates that even if BTCD were to bounce at the current support line, it would likely find resistance at 67%,
Bitcoin Dominance Long-Term
BTC Dominance Chart by Trading View
If BTCD were to break down, it is likely to decrease towards the previous resistance area and the 0.5-0.618 Fib levels of this entire upward move, found between 60-62.5%. To conclude, BTCD is following an ascending support line from which a breakdown is expected. The closest support level is found at 60-62.5%.


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.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing...