While the long-term trend remains uncertain, Bitcoin’s Dominance Rate (BTCD) is likely to exceed its short-term resistance.
The BTCD has been down since October 20, when it peaked at 47.72%. The downward movement continued until November 6, when the rate hit a low of 42.37%.
The decrease was used to validate an ascending support line for the fifth time (green icons). The line has been in place since the September 10 troughs. As long as it does not collapse, the bullish structure remains intact.
BTCD technical indicators are showing bullish signs, but have yet to confirm the uptrend.
The RSI, which is a momentum indicator, has just moved above 50. If it manages to stay above the line, the move would be seen as a sign of an uptrend.
The MACD, which is created by a short and long term moving average (MA), is right at the 0 line. This is a sign of a neutral trend. However, its histogram is moving upwards, which means the line might do the same soon.
Therefore, the daily time horizon is based on an uptrend.
Short-term BTCD movement
Cryptocurrency trader @TradingTank presented a BTCD chart, indicating that the rate should continue to decline towards the support level of 41.50%.
However, BTCD is currently breaking above the 44% minor resistance zone, currently making its second attempt to do so.
If successful there would be strong resistance at 45.50%. Resistance is created by a horizontal resistance zone and retracement resistance levels of 0.5-0.618 Fib.
For the bullish reversal to be confirmed, the BTCD must move above these levels.
The even shorter two-hour chart suggests that BTCD will get there. Both MACD and RSI are on the rise and in positive territory. Also, the rate follows another ascending support line, which creates an ascending triangle that is considered an uptrend.
Therefore, although the long term trend remains uncertain, a short term breakout would be likely. Whether BTCD manages to clear the 45.50% level will likely determine the direction of the future trend.
For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.
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