Bitcoin (BTCD) dominance continues to rise, reaching yearly highs

Bitcoin (BTCD) dominance has increased since Jan. 15, approaching the key resistance at 44.5%.

BTCD is bouncing off the key support area

Between May 2021 and January 2022, BTCD consolidated above the 40% horizontal support area. It last bounced off this level on Jan. 15.

Both the RSI and the MACD generated very clear bullish divergences. Such sharp divergences very often herald an upward trend reversal.

If the uptrend continues, the next resistance lies at 52.25%. This is the 0.382 Fib retracement resistance.

 Source: TradingView

BTCD is approaching the descending resistance line

Trader @eliz883 tweeted a chart of BTCD and said a breakout of 44% could take it to 50%.

Source: Twitter

A closer look shows that the daily chart supports the insights from the weekly chart.

The technical indicators for the daily time frame are bullish as both the RSI and MACD are rising.

The RSI, which is a momentum indicator, is also above 50. Such readings are often associated with an uptrend in price.

The MACD, formed by the short-term and long-term moving averages (MA), is in positive territory and rising.

Both are considered signs of an uptrend.

As such, they support t rally to at least 44.5%, which is the 0.618 Fib retracement resistance and coincides with the descending resistance line.

Source: TradingView

Short term movement

Finally, the six-hour chart shows BTCD breaking above a minor resistance area at 43.5%, making a fresh yearly high in the process.

Additionally, the readings on the weekly, daily, and six-hour charts are in alignment, suggesting a bullish outlook for BTCD.

Therefore, a rally to at least 44.5% seems the most likely scenario going forward.

 Source: TradingView

Please note: Bitcoin dominance is denoted, so BTCD can avoid dots in sentences.

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

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