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The Bitcoin Dominance Rate (BTCD) has been rising since May 19 and is approaching a crucial resistance line.
The short and medium term technical indicators are bullish, supporting the possibility of BTCD reaching the resistance line.
BTCD bounces back to resistance
The daily chart shows that the BTCD has declined along a descending resistance line since the start of the year. Most recently, caused a rejection in March, leading to a low of 39.66% on May 19.
However, it has since risen and has almost hit the resistance line once again. Besides the resistance line, there is no horizontal resistance up to 58%.
On top of that, the technical indicators are bullish. The MACD has yet to confirm the uptrend as its signal line is still below 0 and a lower momentum bar has been created.
However, both the RSI and the Stochastic Oscillator are bullish with the former above 50 while the latter has made a bullish cross.
Therefore, the daily time horizon trend is likely to be bullish. For a longer term BTCD analysis covering the weekly period, click here.
Cryptocurrency trader @Murfski_ presented a BTCD chart, indicating that the alts are not safe. Based on the readings of the daily period, it looks like the path of least resistance is going up.
Short term movement
The short-term two-hour chart is also bullish. This shows that BTCD has already broken above the 0.618 Fib retracement resistance level and is currently breaking above 46%.
This would likely lead him to the descending resistance line.
Both MACD and RSI support this possibility. The first has just passed into positive territory, while the second has gone above 50.
Relationship with BTC
Comparing it to BTC (orange), we can see that BTCD had a positive relationship with BTC from June 8 to 14 (highlighted in black). This means that an increase in the first also caused an increase in the second.
The story continues
However, the relationship may have turned negative on June 21, as the latest BTC price drop caused the BTCD to pump slightly. It remains to be seen whether this relationship will continue.
For the latest bitcoin (BTC) analysis from BeInCryptos, click here.
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