Bitcoin Dominance TrendLooking at the moving averages (MA), we can see that the trend has begun to turn downward. The 50- and 100-day MAs have made a bearish cross and are offering resistance to the rate. On October 25, the Bitcoin dominance rate bounced at the current 68 percent support area. A decrease below it would likely take us to 66.5 percent — where the 200-day MA is currently residing.
ReversalAfter reaching the strong resistance area at 72.5 percent, the Bitcoin dominance rate began to decrease. The resistance area has been in place since 2017. Also, the weekly RSI has begun to generate a bearish divergence. At such an oversold level, this divergence has never previously been present in the dominance rate. This occurrence supports the hypothesis of further downward growth and does not dispute the findings of the daily chart.
Ethereum ResistanceThe Ethereum price is trading inside of a long-term descending wedge that has been in place since September 2018. The price has reached the resistance line of the wedge. A breakout could definitely initiate a rapid increase and cause the Bitcoin dominance to fall. However, the price movement for the past two weeks has been devoid of any significant volatility.
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.
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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.