Bitcoin Dominance Historical Trends
Bitcoin dominance breaks through long-term support
Bitcoin Dominance Lost Important Long-Term Support Level 62.5%
Dominance level completes wave A within the A-B-C correction
The fall in BTCD is due to the rise in the bitcoin rate
Bitcoin Dominance Level (BTCD) has lost an important long-term support level and is now expected to rebound by 59%, followed by a resumption of the downtrend.
Bitcoin’s dominance has been falling since May 8, when the indicator hit a low below 70%. On July 25, BTCD reached long-term support around 62% before making a bullish rebound.
But the indicator could not hold at high levels, and on August 13, BTCD returned to its original positions, and in the following days it dropped even lower. As of this writing, the dominance rate is just above the 60% mark.
MACD on short and long term charts shows that the bearish momentum is gaining momentum, then the daily RSI gives signals of bullish divergence, approaching the trend line. This suggests the potential for a new bounce to the north..
Cryptocurrency trader @ Anbessa100 notes that BTC dominance is likely to continue to decline towards the 59% level, but then rebound..
In the event of a fall to the 59% mark, the RSI will drop to the aforementioned trend line, where the rebound should take place.
The dominance level is possibly completing the W-X-Y correction started in September 2019. If so, now the indicator is at the stage of wave Y, which is realized in the form A-B-C.
The current wave A has almost reached the 1.61% Fibonacci retracement level relative to the first wave A, which falls at the 59.6% mark. This increases the chances of a recovery, which could send the indicator to the 64% level and then resume the decline..
Hourly charts also favor a rebound from the 59.5% level amid increasing bullish divergence signals from the RSI and MACD.
Correlation with the bitcoin rate
Since the beginning of August, there has been mainly an inverse correlation between the level of dominance (blue on the chart) and the bitcoin rate itself (green).
Accordingly, with an increase in the BTC rate, the level of dominance decreases, which is especially clearly seen on sharp movements.
If this trend continues, BTCD will require a fall in the main cryptocurrency for growth.