Altcoins Poised to Take Center Stage as BTC.D Faces Potential Further Decline
The Bitcoin Dominance (BTC.D) has been rejected by the significant resistance and formed a bearish pattern. Despite a recovery last week, it may continue to face rejection and decline.
The Bitcoin Dominance (BTC.D) has risen since confirming the previous long-term range’s resistance at 48.5% as support during the week from August 21 to 27, 2023 (green arrow). This move brought it to the next resistance at 55.49%, formed by the 0.5 Fibonacci resistance level of the previous sharp decline.
After several unsuccessful breakout attempts, BTC.D was ultimately rejected at this level, forming a bearish engulfing pattern during the week from January 8 to 14 (red ellipse). This is a bearish pattern, often signaling a local peak.
The weekly RSI (Relative Strength Index) has created a significant bearish divergence before the decline, and the bearish divergence line remains intact, indicating that the bears are still in control of the market.
Therefore, BTC.D may retest the previous long-term range’s resistance at 48.5% once again.
The 4-hour chart shows that the recovery from the small horizontal support zone at 51% has touched the 0.382-0.5 Fibonacci resistance range of the recent decline.
As the previous decline (red arrow) occurred rapidly, this Fibonacci range is likely to provide strong resistance to the price.
The 4-hourly RSI has created a bearish divergence, often followed by correction phases.
Therefore, BTC.D may face rejection at this Fibonacci range and decline to the 51% zone in the coming days.
The most likely scenario suggests that BTC.D will continue to decline in the near future. The immediate target is 51%, and potentially lower to 48.5%.
As BTC.D represents Bitcoin’s dominance in the cryptocurrency market, its decline indicates that many altcoins may outperform Bitcoin in the coming time.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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