Bitcoin Dominance Rate Highlights
- There is support at 65.5%.
- The daily RSI is bullish.
- There is resistance at 68%.
- The rate has reclaimed a long-term ascending support line.
Important LevelsA very significant level for the dominance rate is found at 66.5%. The price broke down below it in early February and decreased to 61%. The ensuing upward move found resistance right inside this area. However, the current daily candle is moving well above this area, even though it has yet to close. Technical indicators are bullish. The price has flipped the 50-day moving average (MA) as resistance, after struggling to do so for more than a week. In addition, the daily RSI has moved above 50 and is moving upward with strength. The next resistance area is found at 68%, coinciding with the 200-day MA. As stated in the tweet, an increase above this area would likely cause altcoins to drop to new lows.
Long-Term SupportOn Feb. 11, the Bitcoin dominance rate broke down below a long-term ascending support line that had been in place for more than two years. However, the recent increase has caused it to reclaim it, a major bullish development. Technical indicators suggest that the dominance rate is at a crucial level that could determine the direction of its future trend. It is currently facing resistance from the 200-week moving average (MA), above which it has not traded since 2017. In addition, the weekly RSI has reached the 50 line from below. A roughly 3% increase in the dominance rate would cause all three of the following:
- A movement above the 200-week MA
- An RSI cross above 50
- A definite reclaim of the previous ascending support line
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.