The Bitcoin Dominance Rate (BTCD) is approaching its annual lows and could potentially hit a new all-time low.
The BTCD has been down since October 20, when it had just hit a high of 47.72%. Initially, the decline was halted by an ascending support line that had been in place since early September. BTCD bounced off this line on November 7 (green icon).
However, the rebound was short-lived and a break in the ascending support line occurred on November 19. The next day, he validated the line as resistance (red icon).
The breakdown is supported by readings from the RSI and MACD.
The RSI, which is a momentum indicator, has fallen below 50 (red circle). This is a sign of bearish trends, and the previous time (red circle) a significant downward movement followed.
Likewise, the MACD is decreasing and negative. This means that the short term trend is slower than the long term one.
The closest support zone for BTCD is at 39.80%, created by the annual lows.
Will BTCD hit a new all-time low?
Trader @ robw00ds presented an inverted BTCD chart, which shows it is falling to a new all-time low.
The weekly chart suggests BTCD will drop to a new all-time low.
The September-October rebound was preceded by a bullish divergence in the RSI (blue line). This is a bullish event that often precedes trend reversals. However, this was canceled out by a hidden bearish divergence (red line) in the same indicator.
Additionally, the RSI is below 50 which is considered a sign of a downtrend. In addition, the MACD is negative.
Besides the long term support area described above, there is no more support for BTCD until an all-time low is reached.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
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