The Bitcoin dominance rate looks primed for a short-term increase and breakout from its pattern. However, its long-term prospects still remain gloomy.
The Bitcoin price has been decreasing since making a rapid upward move on October 25. However, an interesting development is the fact that altcoins are not losing much value against Bitcoin. Therefore, their rate of decrease is the same or slower than that of BTC.
This is somewhat uncommon. Previously, during rapid BTC price increases or decreases, altcoins usually bleed out. This divergence in trend has led many to call for the beginning of “altseason” — a period in which altcoins experience very significant price increases.
Cryptocurrency analyst and trader @cryptoamsterdam stated that the Bitcoin dominance rate might be ready to increase after a period of consolidation. At the time of writing, it was breaking out in short-term time frames.
Pullbacks incoming.
— CryptoAmsterdam (@damskotrades) November 19, 2019
Bitcoin dominance breaking out on the lower time frames after a fews days of consolidation at support.
Being cautious with $ALTS pic.twitter.com/7hDsZhkGpo
Long-Term Bitcoin Dominance
The long-term Bitcoin dominance rate shows strong resistance at 72.5 percent. Once the price reached it in September, it began to decrease. Furthermore, we can see a bearish divergence in the RSI which is at its highest levels yet. Additionally, we have a bearish cross in the MACD, which usually preceded downward moves.
Looking at the daily chart, we can see a possible descending triangle developing.
The Bitcoin price is currently at the resistance line of the triangle. A breakout above it and the wick resistance at 68.6 percent could trigger a rapid price increase.
However, due to the bearish outlook of the long-term chart, we believe this increase would end at a maximum of 70.5 percent.
Conclusion
To conclude, while the Bitcoin dominance rate might increase in the short-term, it looks to have reached a top and we expect it to decrease during the upcoming month. Do you think the Bitcoin dominance rate will increase or will “Altseason” begin? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!
Disclaimer
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. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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