Bitcoin Dominance (BTCD) collapses and resumes its descent to the lower reaches of the range

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Bitcoin’s Dominance Rate (BTCD) has been declining since July 30 and fell from an ascending support line shortly thereafter.

It broke below the 0.618 Fib retracement support level and is heading towards the minor support at 41.50% horizontal support.

Long-term BTCD descent

The BTCD has been down since Jan. 3, after peaking at 73.63%. So far, it hit a low of 39.66% on May 19.

The ensuing rebound caused a validation of the 39% area as support.

While the BTCD peaked at 49.15% on July 30, it has been declining ever since.

Technical indicators are providing bullish signals, but not enough to confirm an uptrend reversal. The MACD is up but remains negative and the RSI has gone above 30 (green icon) but is still below 50 (red icon).

Future BTCD movement

Cryptocurrency trader @Thebull_crypto presented a BTCD chart, indicating that the downward movement is likely to continue towards the 41% support area.

The daily chart shows that the BTCD broke out of an ascending support line and validated it as resistance on August 9th (red icon).

While it hovered above the 0.618 Fib retracement support level of 43.30% for about ten days, it finally collapsed on August 29.

It is currently heading towards the 41.50% minor support level as noted in the tweet.

MACD is negative and RSI is below 50. Therefore, BTCD should continue to decline towards the aforementioned resistance.

Number of waves

The number of waves indicates that BTCD is in wave five of a bearish pulse (orange).

The most likely target for the fund is between 33.9% and 35.8%. The target is found using an outer Fib retracement on the fourth wave (black) and projecting the length of the first wave to the top of the fourth wave (orange).

If the target is reached, it would constitute a new all-time low.

BTCD Chart by TradingView

For the latest BeInCryptos Bitcoin (BTC) analysis, click here.

Disclaimer All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes on the information found on our website is strictly at his own risk.

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