The Bitcoin Dominance Rate (BTCD) has broken out from a bullish reversal pattern and reclaimed an important horizontal level.
While BTCD is likely to increase towards the long-term descending resistance line outlined below, a breakout is required for the long-term trend to remain bullish.
Pattern Breakout
On Sept 2, the BTCD reached a low of 57.51% and began to rally. In doing so, it created an inverse head and shoulders (IH&S) pattern, which is a bullish reversal signal. The rate broke out on Oct 11 (red arrow in the image below) and has been increasing since. Today, it broke out from the 62.5% area, which had been acting as resistance, and continued to rally. The closest resistance area is 64.2%, while the 62.5% area is now likely to act as support.![Bitcoin Dominance Resistance Levels](https://beincrypto.com/wp-content/uploads/2020/10/btcd1-lead3-oct28.png)
![BTCD Weakness](https://beincrypto.com/wp-content/uploads/2020/10/btcd2-lead3-oct28.png)
Long-Term Movement
Cryptocurrency trader @damskotrades outlined a Bitcoin dominance chart, outlining an increase all the way to 66%, before a sharp drop that eventually takes the rate towards 52%.![Bitcoin Dominance Chart](https://beincrypto.com/wp-content/uploads/2020/10/ElVI4PtX0AI89Ek.jpg.optimal.jpg)
![BTCD Descending Resistance](https://beincrypto.com/wp-content/uploads/2020/10/btcd3-lead3-oct28.png)
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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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