The Bitcoin Dominance Rate (BTCD) is in the process of breaking down from a long-term support level that has been in place for more than two years.
BTCD is expected to fall below this level and gradually decrease towards 54% and possible 49%.
Long-term BTCD drop
The BTCD has been decreasing since December 2020. At the time, it was rejected by the long-term 71.30% resistance area.
The drop has been sharp and the dominance rate fell all the way to the 57.50% support area. The support has held since April 2019.
Currently, it is trading just below this level.
Technical indicators are bearish. The MACD is decreasing. The RSI has fallen below 50. The Stochastic oscillator has made a bearish cross.
Therefore, BTCD is expected to decrease towards the next support levels, found at 54.25% and 49.82%, respectively.
Future movement for BTCD
The daily chart shows a breakdown from a symmetrical triangle. This is likely to have been wave four of a bearish impulse that began with the aforementioned December 2020 high.
Potential targets for the low of this movement is found between 53.5% and 54.5% and near 49%.
More specifically, the targets are found using Fib projections on the short- and long-term decreases.
Furthermore, they align with the previously outlined long-term support levels.
On April 2, the altcoin index (ALTPERP) broke out above the previous all-time high of $3,768.
It is increasing since, and a movement that has been supported by technical indicators. The RSI has just broken out above 70 and the Stochastic oscillator has made a bullish cross. In addition the MACD has crossed into positive territory.
The next resistance areas are found at $4,607 and $5,972.
To conclude, BTCD has decreased considerably in 2021. As a result of the drop, it has fallen below a long-term support level. Therefore, it is likely to continue decreasing at an even sharper rate.