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Bitcoin Analysis: BTC Dominance Hits New Record

 


Bitcoin dominance is Bitcoin 's percentage market share in the crypto market. If this increases, then this is an indication of a possible bull run. In addition, the BTCD can be analyzed using the normal means of technical analysis. After developing a bullish pattern on the Bitcoin Dominance Rate (BTCD) chart, it has broken above a descending resistance line that has not been breached for years.


On January 22, 2022, Bitcoin dominance bounced off the 40% long-term support area for the third time (green arrows). This was followed by the current and rapid upward movement. So far, the BTCD has risen to 45.25%. Also, the Bitcoin Dominance Rate weekly close has not been above this range since early January 2018.


As the BTCD bounced off the support area for the third time, you can see a triple bottom pattern . This is a bullish pattern. As the pattern formed above a long-term support area, BTCD will find strong support there. Further increases are also to be expected.


If the current up move continues, BTCD will face major resistance at 52.30%. That is where the 0.382 Fib retracement level (measured by the entire downmove since January 2021) is located.


Apart from the bullish trend, the RSI also shows us that the Bitcoin dominance could increase further. This has recently increased to over 50. Previously, the RSI was below the threshold for 462 days. Values ​​above 50 signal that the trend is bullish.

Crypto trader and investor @eliz883  posted a BTCD chart on Twitter. On this you can see that BTCD is about to break out of a descending resistance line.

After the tweet, Bitcoin dominance then really broke above the resistance line with a strong and fast move higher. The BTCD then reached a new high for the year.


Also on the daily chart, the RSI signaled that the BTCD will continue to rise or break above the line. In the meantime, the indicator has arrived in the overbought area, but bearish divergence has not yet developed. Therefore, the current upward movement could continue.


However, before the BTCD could face resistance at 53.20%, it will still have to clear the minor resistance level at 47.20%.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action that the reader takes based on the information found on our website is entirely at their own risk.

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