Bitcoin Dominance Breaks Down, Approaches Range Lows
BeInCrypto
Published Aug 23, 2021 12:49
Updated Aug 23, 2021 13:10
Bitcoin Dominance (BTCD) Breaks Down, Approaches Range Lows
The bitcoin dominance rate (BTCD) has been decreasing since July 30 and broke down from an ascending wedge on Aug 11.Both the trend and wave count seem to be bearish, therefore a continued decrease toward a new all-time low could transpire.
h2 BTCD breaks down/h2BTCD had been increasing inside an ascending wedge beginning on May 19. It consolidated inside this pattern until it reached a high of 49.24 on July 30. Since then, it has been moving downwards. It broke down from the wedge on Aug 11 and has been moving downwards at an accelerated rate since. Currently, it’s just above the 0.618 Fib retracement support level at 43.30%. If it breaks down from here, the next support would be found at 39.60%.Technical indicators are bearish. While the MACD has given a bullish reversal signal, it’s still below 0. The RSI is also below 30 and the Stochastic oscillator has made a bearish cross. Therefore, it’s likely that the trend as a whole is bearish.
h2 Wave count/h2Cryptocurrency trader @Jackis_trader outlined a bitcoin dominance chart, stating that another drop towards a new all-time low would be likely.
The most likely wave count supports the possibility that BTCD will reach a new all-time low. If the current rally is part of a fifth wave, the most likely downside target is between 33.9-35.5%. This range is found by using an external Fib retracement on wave four and the length of wave one.
h2 Relationship to BTC/h2The relationship between BTCD and Bitcoin has been mostly negative for the past two weeks. This means that an increase in the price of BTC has caused a decrease in the dominance rate. However, the relationship has not been clear cut. In the short-term, price increases have caused decreases in the BTCD. A continued medium-term increase in the price of bitcoin could actually cause the dominance fall to a new all-time low.
Continue reading on BeInCrypto
Get The App
Written By: BeInCrypto
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.