BTCD Rejection and Drop Could Lead to Altcoin Rally

BTCD Rejection and Drop Could Lead to Altcoin Rally
фото показано с : beincrypto.com

2021-8-5 16:52

The Bitcoin dominance rate (BTCD) is in the process of breaking down from an ascending support line that has been in place since the May 19 low.

It is possible that it has reached a local top and will continue decreasing in the near future.

BTCD breaks down

BTCD has been following an ascending support line since reaching a low of 39.66% on May 19. The upward movement continued until a high of 49.14% was reached on July 30. 

A downward movement followed shortly afterwards and BTCD decreased below the support line on Aug. 2. 

Technical indicators in the daily time-frame are turning bearish. The decrease was preceded by bearish divergence in the MACD. In addition to this, the indicators has given a bearish reversal signal and is close to turning negative. The RSI has just crossed below 50 (red icon) and the Stochastic oscillator is close to making a bearish cross (red circle).

Chart By TradingView

Cryptocurrency trader @Damskotrades outlined a BTCD chart, stating that the decrease is going as expected and indicating a potential breakdown is likely.

Source: Twitter

Since the tweet, BTCD has resumed its descent and is in the process of breaking down below the line.

Wave count

The wave count indicates that BTCD is in wave five of a bearish impulse (orange) that began with the Jan. 2021 high. 

Furthermore, we can see that it was rejected by the 0.382 Fib retracement resistance level at 49.25%. 

The most likely target for the bottom of the entire movement is between 34.23-35.56%. The target is found using the length of wave one (orange) and the 1.61 external Fib retracement of wave four (black).

Chart By TradingView Relationship to BTC

The relationship between BTCD (green) and BTC (orange) has been positive since July 25. This means that an increase in the price of BTC is causing an increase in BTCD and vice versa.

This is also visible by the correlation coefficient (blue), which has been showing values close to one since July 25, implying positive correlation.

Therefore, the BTC price would have to continue falling in order for BTCD to do the same.

Chart By TradingView

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

The post BTCD Rejection and Drop Could Lead to Altcoin Rally appeared first on BeInCrypto.

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Фото:

The Bitcoin Dominance Rate Lessens, Alt-Season Hopes Fade

While the Bitcoin dominance rate (BTCD) has moved above an important resistance level, the altcoin dominance (ALTD) was rejected by its previous support area and has been decreasing since. While several altcoins have previously initiated strong upward moves, the majority of them have been correcting, decreasing towards and even below their pre-breakout levels.

2020-5-19 19:15