The Bitcoin Dominance Rate (BTCD) has been decreasing since a rejection at the beginning of the year. It’s now showing strong signs of a bullish trend reversal.
The Bitcoin Dominance Rate is expected to find support near 60% and initiate an upward move.
Bitcoin Dominance Long-Term Levels
BTCD has continued a descent that began with a rejection from the long-term 71.5% resistance area on Jan. 3, 2021.
Currently, the BTCD is approaching the 0.382 Fib support at 58.5%, an area that was the catalyst for the previous upward movement that began in September 2020.
Technical indicators are gradually turning bearish, but have not confirmed the trend reversal yet. This is especially evident by the fact that the RSI has crossed below 50. However, the MACD is above 0 and the Stochastic oscillator has yet to make a bearish cross.
Future Movement
The daily chart provides a more bullish outlook.
The BTCD is at a very likely reversal area, found between the 0.618 and 0.786 Fib retracement levels between 60.7% and 63.5%. This is also a horizontal support area that caused a significant bounce at the end of November 2020.
Technical indicators have also turned bullish. The RSI has generated a bullish divergence, the Stochastic oscillator has just made a bullish cross, and the MACD has given a bullish reversal signal.
This suggests that the descent is reaching its end and the BTCD should soon move upwards.
Shorter-term charts support this and indicate that another drop towards 60.70% is expected.
BTCD seems to be in the final sub-wave of an A-B-C corrective structure, and a target between 60.42% and 60.84% is found using Fib projections and external retracements.
Altcoin Index
Cryptocurrency trader @Altstreetbet outlined an Altcoin Perpetual Index (ALTPERP) chart, stating that it’s likely to resume its upward movement in the near future.
Since then, the ALTPERP has broken out from the $1,680 resistance area and is now in price discovery.
The upward move was preceded by hidden bullish divergence in the RSI. However, both the MACD and Stochastic RSI are showing signs of weakness.
Therefore, while the trend is still bullish, it is gradually losing momentum.
Conclusion
The Bitcoin Dominance Rate is expected to soon find a bottom and initiate a bounce upwards.
While the Altcoin Perpetual Index trend is still bullish, it has begun to show signs of weakness.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
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Source: https://beincrypto.com/bitcoin-dominance-rate-continues-tumbling-altcoins-flourish/
