Altcoins celebrate after Bitcoin dominance collapses (BTCD)

Bitcoin

‘s Dominance Index (BTCD) has been rising since bouncing off long-term support at 39.50% in early May. Sponsored Sponsored

However, on August 10, Bitcoin’s dominance broke down from an upward wedge, potentially signaling the start of a downtrend.

Long-term decline

Bitcoin’s dominance has been moving downward since peaking at 73.63% in January 2021. The decline continued until reaching a low of 39.66% in May of the same year. This validated the 39.50% horizontal area as long-term support. BTCD has not reached this level since April 2018.

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rebound that followed led to the generation of a bullish engulfing candle and a final peak at 49.16%. However, this led to the formation of a long upper wick (red icon) and a decline that is still ongoing.

While there are some signs of a trend reversal such as the rising MACD and RSI

, the former is negative while the latter is still below 50. Altcoins celebrate after Bitcoin dominance collapses (BTCD)Dominacja Bitcoina - dłutogerminowaBTCD chart courtesy of Tradingview

Bitcoin’s dominance is breaking down

The

daily chart is also bearish. Since the aforementioned bounce, BTCD has been rising along a rising wedge. However, it broke out of it on August 10 and has been moving downward ever since.

The rejection occurred right at the resistance level at the 0.382 Fib retracement (white) at 48.70%.

Technical indicators on daily intervals are bearish. MACD almost crossed the negative territory, RSI moved above 50 and stochastic oscillator

formed a bearish cross.

While there is minor support at 41.60%, it would make more sense for BTCD to move back to the long-term support area at 39.50%.

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Altcoins celebrate after Bitcoin dominance collapses (BTCD)Altcoins celebrate after Bitcoin dominance collapses (BTCD) BTCD chart thanks to Tradingview

Number of waves of BTCD

Cryptocurrencytrader @Altstreetbet charted BTC

D, stating that it is likely to fall towards new lows as it completed wave four. Altcoins celebrate after Bitcoin dominance collapses (BTCD)BTCD kończy 4 falęSource: Twitter

The most likely wave count is consistent with what was stated in the tweet.

If BTCD has started wave five, then the most likely target for the bottom of this move is in the 33.9-35.5% range.

We find it using the length of wave one (orange) and the outer retracement on wave four (black).

Altcoins celebrate after Bitcoin dominance collapses (BTCD)Altcoins celebrate after Bitcoin dominance collapses (BTCD)BTCD chart courtesy of Tradingview

For the latest analysis of Bitcoin (BTC) by BeInCrypto, click here.

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