The Bitcoin Dominance Rate Continues Its Ascent

Nevertheless, the rate has begun to show some weakness, indicating that a short-term decline could occur before BTCD resumes its upward trend.

Long-Term Levels for the Bitcoin Dominance Rate

The BTCD has been increasing since the end of Aug when it reached a low of 57.21%. The ascent continued above the minor resistance level of 62.5%, taking BTCD near the next resistance area at 68%. Technical indicators on the weekly time-frame are bullish. All three of the: MACD, RSI, and Stochastic Oscillator are increasing, with the latter having made a bullish cross and the MACD just reaching positive territory. Therefore, the long-term trend is likely bullish.

Cryptocurrency trader @TheEuroSniper outlined a Bitcoin dominance chart (BTCD), stating that the rate is likely to do a final push into resistance at 68%, before eventually dropping sharply towards 54%.

Both the resistance and support levels coincide with those we have drawn up, making this a likely scenario if BTCD were to get rejected at 68%.

Possible Rejection

The shorter-term 12-hour chart supports the possibility of a rejection since it shows that BTCD has completed a double-top pattern. There is also bearish divergence on both the RSI and the MACD. Furthermore, it seems that BTCD has completed an extended third wave (shown in black below) of a five-wave bullish impulse, and is currently correcting inside wave four. A likely level for the wave to end would be near 62.5%, the 0.5 Fib retracement level of wave three and the previously outlined minor support level.

ETH/BTC

Since ETH is the largest altcoin, an increase in the ETH/BTC price usually causes a drop in BTCD. ETH/BTC is approaching a strong support area at ₿0.0255, which could reverse the bearish trend. Technical indicators support this move since the RSI is in the process of generating bullish divergence and the Stochastic Oscillator has made a bullish cross. This movement would fit with one final rally in BTCD before alts get some type of relief rally.

Conclusion

To conclude, BTCD should drop in the short-term, providing some relief for altcoins, before eventually resuming its upward trend. For BeInCrypto’s previous Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto