BTCD shows up – what happens to altcoins?
Bitcoin Dominance (BTCD) hit the 41% support area on September 4th and has started to increase slightly.
However, there is still no clear bullish reversal signal and the bearish structure is still intact.
BTCD is still moving down
BTCD has fallen since hitting 73.65% high on Jan 3rd. The downtrend continued until it hit a low of 39.66% on May 19th.
A jump followed, but it was short-lived.
The technical indicators continue to decline. The RSI is below 50 and the MACD is in negative territory. The latter has started to move up, but last week it generated a lower momentum bar (red icon).
In addition, the supertrendline is bearish.
Hence, it is likely that the long-term trend will continue to be bearish.
BTCD weekly chart | Source: TradingView
The daily chart shows that BTCD has also been moving along a descending resistance line since July 25th. Yesterday he was rejected by this line for the fourth time.
Likewise, the MACD and RSI are both falling. The former is in negative territory while the latter is below 50. The supertrend line is also bearish (red line).
There is a slight support at 41%. A break below this level could push BTCD to new all-time lows.
BTCD daily chart | Source: TradingView
Trader @CryptoNewton sketched a BTCD chart indicating it will likely ricochet.
The source: Twitter
While the rebound has taken place, BTCD has yet to break above the descending resistance line mentioned above. Additionally, the number of waves suggests there could be another low point.
Short term movement
In early September, BTC had a positive relationship with BTCD. This means that raising one will also help the other go higher.
However, since the sharp drop on September 7th, the relationship has turned negative. Hence, an increase in the price of BTC will cause BTCD to decrease and vice versa.
BTCD BTC / USDT Hourly Chart | Source: TradingView
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According to Beincrypto