Bitcoin Dominance (BTCD) Approaching Critical Resistance – What’s Next?
Bitcoin Dominance (BTCD) is showing strong signs of a bullish trend reversal but has yet to overcome an important area of resistance.
As long as this does not succeed, the trend is not considered bullish.
BTCD has been falling along with a descending resistance line (red symbol) since July 30th.
It broke above this line on September 18, indicating that the downtrend is now over.
Both the price movement and the signals from technical indicators are bullish.
The MACD line is moving up and its histogram is in the positive zone. The RSI has now risen above 50.
However, for the trend to be confirmed as bullish, BTCD needs to go beyond the 44.50% region. This is the 0.5 fib retracement resistance and it coincides with the supertrend resistance line (red line). Moving above this line will go a long way in confirming that the trend is bullish.
BTCD daily chart | Source: TradingView
Short term movement
Trader @DTCcryptotrades tweeted a BTCD chart indicating it has hit the 44.50% resistance area.
The shorter-term six-hour chart is also showing bullish signs. It shows that BTCD erupted over an ascending parallel channel. This is a sign of impulsive move, which means that the current trend is bullish.
In addition, the MACD and RSI also provide bullish signals as daily time frames.
However, the 44.85% horizontal resistance area coincides with the 0.5 fib retracement level, adding to its importance.
Hence, whether BTCD breaks over this zone or is rejected is very important to determine the future trend.
BTCD 6-hour chart | Source: TradingView
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto