The Bitcoin dominance rate has reached a significant resistance area and decreased afterward as a result. The fact that it is trading inside a bearish pattern makes a breakdown likely.
Well-known trader @KingThies stated that he has noticed the reduced engagement in altcoin posts and the fact that the prices are very near all-time lows. Based on his experience, he believes a surge in the prices of altcoins relative to BTC will follow.
Tweet engagement and alt prices are both at lows.
My logic is that it usually suggests an incoming surge for ALT/BTC pairs
OR that my content sucks and need to get back to higher value insight
Lets say its the first option but ill deliver like its the second
— Parabolic Thies ♔ (@KingThies) March 26, 2020
Below, we will take a look at the Bitcoin dominance rate to see if an altcoin rally is likely and attempt to determine which altcoins can increase if one does transpire.
The Bitcoin dominance rate has been increasing since Feb. 15, when it reached a low of 61.98%. However, the price has reached a major resistance area that is found at 67.5% and has failed to break out on the first attempt, creating a bearish engulfing candlestick.
In addition, the BTC dominance rate is trading inside an ascending wedge, which is considered a bearish pattern.
Therefore, it is entirely plausible that the BTC dominance rate will break down from this pattern, causing alts to increase as a result.
One of the most bullish charts for any altcoin is found in XRP.
The XRP price has been trading inside a long-term range of 2,400-3,350 satoshis since August 2019. On March 25, the XRP price briefly decreased below the bottom of the range, just to create a bullish engulfing candlestick the next day and reclaim the support level.
A similar movement in September 2019 led to a 60% upward move. Therefore, if the same transpires this time, the price could reach a high of 2,900 or even 3,400 satoshis. This would be especially true if the daily RSI is successful in reclaiming the resistance from the 50- line.
One other coin with a bullish chart is BNB. The BNB price has reached the main support area at 195,000 satoshis, which has been the catalyst of several upward moves from September 2019 until now.
It has been generating bullish divergence since April, which eventually led to the creation of a bullish engulfing candlestick on March 26.
If the price continues to move upward, the next resistance areas are found at 205,000 and 235,000 satoshis.
To conclude, the BTC dominance rate has reached a major resistance area and failed to break out above. This could cause ALT/BTC pairs to post significant gains. Two such altcoins that are in a good position to increase are BNB and XRP.