The Bitcoin dominance rate has been decreasing since Jan 8, reaching a low on Feb 15. Since then is has begun another upward move, recouping almost 50% of its previous losses.

Bitcoin Dominance Rate Highlights

  • The price is either trading inside a descending or symmetrical triangle.
  • There is support at 65% and 58.5%.
  • There is resistance at 66.5%.
  • A death cross has transpired.

Since numerous models predict a price increase, especially after the next halving, the dominance rate could decrease as a result. Previously, BeInCrypto has suggested that the two have a negative relationship, so a short-term BTC increase could cause the dominance rate to fall sharply. Crypto trader @TradingTank believes the opposite, at least in the short-term, since he used the hourly chart to suggest the Bitcoin dominance rate will soon move upwards.

Death Cross

The first thing to note is that a bearish cross between the 50 and 200-hour moving averages (MA), also known as a death cross has transpired on Jan 10. This is a bearish sign that suggests the price will move lower, supported by the fact that the price is facing very close resistance from the 50-day MA.

The main resistance area is found at 66.5%, so until the price flips that, it can be assumed that the current trend is bullish. Even if it does break above the 66.5% zone, it would still face resistance from the 200-day MA.

However, in the short-term, the price has flipped the 65% level as support. So, we could see some range trading between these two areas. with a possible upward move towards the 65% level.

Death Cross Bitcoin Dominance

Bearish Or Neutral Triangle?

In the shorter-term, the price is either trading inside a symmetrical or descending triangle. Lower time-frames suggest symmetrical (dashed), while using the closing prices of higher time-frames give a descending triangle (solid). The view that aligns with the daily chart is that the rate is trading inside a descending triangle — the bearish scenario.

In addition, the weaker response each time the price has reached the support area has generated several lower highs, creating a bearish directional bias, indicative that the bulls are losing strength.

Symmetrical Triangle

Future Bitcoin Movement

Finally, the weekly chart gives the most bearish outlook. The rate has broken down below a 756-day ascending support line. The current increase has only served to validate this line as resistance.

The weekly RSI is below 50, indicating a bearish trend. The next support area is found at 58.5%.

Bitcoin Dominance Ascending Support

To conclude, the Bitcoin dominance rate has broken down below a long-term support line. While short-term decreases are possible, the long-term outlook suggests that the rate will decrease to 58.5%.

The post How Bitcoin Dominance Could Be Affected by a ‘Death Cross’ and the Upcoming Halving appeared first on BeInCrypto.

Source: Be In Crypto