The Bitcoin Dominance Rate (BTCD) rate is currently increasing. It’s could potentially soon break out above the 65% resistance area.
While the possibility of a continued escalation remains, the BTCD is expected to resume its downward movement after and decrease toward the 51%-56% range.
Bitcoin Dominance Bounces
The BTCD has been trending between 59.5%-65% since Feb. 13, when it reached a local low of 59.67%.
At the time of press, it was very close to the 65% resistance area. This level is also the 0.382 Fib retracement level of the entire downward movement.
Technical indicators are turning bullish, but are at very crucial levels. The RSI is right at the 50-line and the MACD histogram is close to turning positive.
If both occur, it would likely confirm that the trend is bullish, especially if the BTCD were to increase above the 66.64% resistance area.
Cryptocurrency trader @TheEuroSniper outlined a BTCD chart, suggesting a slight bounce before another move to the downside. As seen above, the BTCD is currently in the process of turning upwards.
The two-hour chart shows that BTCD has already broken out from a short-term descending resistance line.
However, the pump that followed didn’t last long. It was rejected at the 64.5% area after.
Even though technical indicators are bullish, the BTCD would have to reclaim both the 64.5% and 66% areas in order for the trend to be considered bullish. The latter is also the long-term 0.5 Fib retracement level from the previous section.
The wave count suggests that BTCD is nearing the end of the C wave of an A-B-C corrective structure (white).
The sub-wave count is shown in orange. The BTCD is nearing the top of sub-wave four.
The most likely target for the end of the movement will fall between 56.80%-57.60%. Below that, 51.90% is still a valid possibility.
This count would be invalidated by an increase above the sub-wave one low at 68%.
The BTCD is expected to continue climbing, potentially moving towards 65%-67%, before eventually breaking down and dropping towards the mid-to-low 50% levels.
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