Bitcoin Dominance Continues Ascent Towards 50%

The Bitcoin dominance rate (BTCD) has been increasing since May 19 and is approaching a crucial resistance line.

Short- and medium-term technical indicators are bullish, supporting the possibility that BTCD will reach the resistance line.

BTCD bounces towards resistance

The daily chart shows that BTCD has been decreasing alongside a descending resistance line since the beginning of the year. Most recently, caused a rejection in March, leading to a 39.66% low on May 19.

However, it has been moving upwards since, and has nearly reached the resistance line once more. Besides the resistance line, there is no horizontal resistance until 58%.

In addition to this, technical indicators are bullish. The MACD has yet to confirm the bullish trend, since its signal line is still below 0 and a lower momentum bar has been created. 

However, both the RSI & Stochastic oscillator are bullish, the former being above 50 while the latter having made a bullish cross. 

Therefore, it is likely that the trend in the daily time-frame is bullish. For a longer-term BTCD analysis covering the weekly time-frame, click here.

Cryptocurrency trader @Murfski_ outlined a BTCD chart, stating that alts are not safe. Based on the readings from the daily time-frame, it does seem that the path of least resistance is up.

Short-term movement

The shorter-term two-hour chart is also bullish. It shows that BTCD has already moved above the 0.618 Fib retracement resistance level and is currently in the process of breaking out above 46%. 

Doing so would likely take it to the descending resistance line. 

Both the MACD & RSI support this possibility. The former has just crossed into positive territory, while the latter has moved above 50.

Relationship to BTC

When comparing it to BTC (orange), we can see that BTCD has had a positive relationship with BTC from June 8 to June 14 (highlighted in black). This means that an increase in the former has also caused an increase in the latter.

However, the relationship might have turned negative on June 21, since the most recent BTC price decrease caused a slight pump in BTCD. Tt remains to be seen if this relationship will continue.

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.