Analysis
Bitcoin Dominance (BTCD) could break long-term support and hit new all-time lows
Bitcoin Dominance (BTCD) is about to break below a long-term support area, an event that will take it to new all-time lows.
Weekly outlook
On May 19, BTCD fell to a low of 39.66% and rebounded. At first it looked like the price was about to start an upward move. However, it made two lower highs and returned to the May lows.
The decline confirmed the 38% zone as support. BTCD has been trading above this zone since the beginning of 2018. A decline below this level could trigger a decline to new all-time lows.
Technical indicators are falling, supporting the possibility of Bitcoin Dominance breaking the support zone.
The MACD, formed from the short-term and long-term moving averages (MA), is in negative territory. This means that the short-term MA is slower than the long-term MA and is a sign of a downtrend.
The RSI, a momentum indicator, is also falling. Although it previously created a bullish divergence (Green Line), it broke the trendline and is currently bearish. It’s also below 50.
A collapse from the 38% zone is therefore expected.
BTCD weekly chart | Source: TradingView
Trader @AltcoinSherpa outlined the BTCD chart, which shows the ratio is down 46% from the year high. As mentioned earlier, it looks like the downtrend will continue.
The source: Twitter
Descending
The daily chart offers a similar outlook. BTCD has been falling along with a descending resistance line since October 20th.
While the MACD and RSI both initially created bullish divergences, both broke below the trendline and invalidated the divergence.
This supports the possibility of BTCD breaking support and continuing its transition to all-time lows.
BTCD daily chart | Source: TradingView
Future movement
The entire decline since the start of the year looks like a five-wave drop, with BTCD currently in its fifth and final wave.
The potential target for the bottom of the entire movement is 27%. The goal is created using the outer 2.61 level of fib retracement (white) on wave four. In addition, the target created by the 0.618 length of waves 1-3 (black) is also close to this level.
Then an upward movement could be expected.
BTCD weekly chart | Source: TradingView
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Analysis
Bitcoin Dominance (BTCD) could break long-term support and hit new all-time lows
Bitcoin Dominance (BTCD) is about to break below a long-term support area, an event that will take it to new all-time lows.
Weekly outlook
On May 19, BTCD fell to a low of 39.66% and rebounded. At first it looked like the price was about to start an upward move. However, it made two lower highs and returned to the May lows.
The decline confirmed the 38% zone as support. BTCD has been trading above this zone since the beginning of 2018. A decline below this level could trigger a decline to new all-time lows.
Technical indicators are falling, supporting the possibility of Bitcoin Dominance breaking the support zone.
The MACD, formed from the short-term and long-term moving averages (MA), is in negative territory. This means that the short-term MA is slower than the long-term MA and is a sign of a downtrend.
The RSI, a momentum indicator, is also falling. Although it previously created a bullish divergence (Green Line), it broke the trendline and is currently bearish. It’s also below 50.
A collapse from the 38% zone is therefore expected.
BTCD weekly chart | Source: TradingView
Trader @AltcoinSherpa outlined the BTCD chart, which shows the ratio is down 46% from the year high. As mentioned earlier, it looks like the downtrend will continue.
The source: Twitter
Descending
The daily chart offers a similar outlook. BTCD has been falling along with a descending resistance line since October 20th.
While the MACD and RSI both initially created bullish divergences, both broke below the trendline and invalidated the divergence.
This supports the possibility of BTCD breaking support and continuing its transition to all-time lows.
BTCD daily chart | Source: TradingView
Future movement
The entire decline since the start of the year looks like a five-wave drop, with BTCD currently in its fifth and final wave.
The potential target for the bottom of the entire movement is 27%. The goal is created using the outer 2.61 level of fib retracement (white) on wave four. In addition, the target created by the 0.618 length of waves 1-3 (black) is also close to this level.
Then an upward movement could be expected.
BTCD weekly chart | Source: TradingView
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page
