Bitcoin Dominance (BTCD) is showing signs of a sharp decline, is it time to buy altcoins?

Bitcoin Dominance (BTCD) has risen since it bounced again from the long-term assist space of ​​39.50% in early May.

However, it broke under a rising wedge on August 10, presumably signaling the beginning of a downtrend.

Longer decline

BTCD has fallen from its excessive of 73.63% in January 2021. The decline continued till it hit a low of 39.66% in May of that yr. This transfer confirmed the 39.50% horizontal zone as long-term assist. BTCD had not beforehand fallen to this stage since April 2018.

The rally that adopted resulted in a bullish engulfing candle and a ultimate excessive of 49.16%. However, this motion created a lengthy wick on prime (purple symbol) and the decline is nonetheless ongoing.

While there are some signs of reversal, such because the rising MACD and RSI, the previous stays in destructive territory whereas the latter stays under 50.

BTCD weekly chart | Source: TradingView

BTCD breaks

The every day chart is equally bearish. Since the above rebound, BTCD has been shifting upwards together with an ascending wedge. However, it broke on August tenth and has fallen since then.

The rejection got here immediately on the 0.382 Fibonacci retracement resistance (white) at 48.70%.

Technical indicators within the every day timeframe are falling. The MACD has virtually crossed into destructive territory, the RSI has slipped under 50 and the stochastic oscillator has created a bearish cross.

While there is minor assist at 41.60%, for BTCD it would make extra sense to retest the long-term assist space of ​​39.50%.

BTCD every day chart | Source: TradingView

Count waves

Trader @Altstreetbet sketched the BTCD chart, suggesting that it will probably drop to new lows by the time it completes wave 4.

The supply: Twitter

The more than likely wavenumber matches what is said within the tweet.

If BTCD has began the fifth wave, the more than likely goal for the underside of the transfer is between 33.9 and 35.5%.

It is decided based mostly on the size of wave one (orange) and the outer fib retracement stage on wave 4 (black).

BTCD every day chart | Source: TradingView

You can see the coin costs right here.

Disclaimer: This article is for informational functions solely, not funding recommendation. Investors ought to analysis rigorously earlier than making a resolution. We usually are not accountable for your funding selections.

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