Bitcoin Dominance (BTCD) Drops to Lowest Levels Since 2018

·2 min read

The bitcoin dominance rate (BTCD) has fallen below numerous long-term support levels, reaching its lowest value since 2018.

The BTCD rate is expected to continue moving downwards to eventually reach the closest support level at 39.5%.

Long-term BTCD decrease

BTCD has been moving downwards since it reached a high of 73.63% in December 2020. Since then, it has decreased by a full 30%.

The rate of decrease really accelerated once a breakdown from the 53% area occurred. Previously, this level had been acting as support since August 2018.

Currently, BTCD is at the 0.786 Fib retracement support level, found at 43.51%. The next support below it is a horizontal level found at 39.5%. This area not been reached since early 2018.

Technical indicators in the weekly time frame are still bearish. The MACD is negative, the RSI has fallen below the 30-line and the Stochastic oscillator has made a bearish cross.

Therefore, the long-term trend is still considered bearish.

BTCD Long-Term

Failed BTCD reversal

The daily chart does not provide any clear bullish reversal signs.

The MACD has invalidated a potential bullish reversal signal with a lower momentum bar. And, while the RSI has been oversold for a full 42 days, it has not generated any significant bullish divergence yet. Similarly, the Stochastic oscillator has not yet made a bullish cross.

Therefore, the daily chart readings align with those from the weekly time frame, indicating that the trend is still bearish. As a result, further decreases are expected.

BTCD Daily Movement

The two-hour chart also provides bearish readings. Both the MACD and RSI are decreasing. The latter is close to breaking down below 30.

BTCD Short-Term

Conclusion

The bitcoin dominance trend is still bearish, indicating that the rate could continue decreasing towards the next closest support level at 39.50%.

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

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