Bitcoin Dominance Rate Declines, Translating to Gains for Alts
- Bitcoin saw its market dominance breaching an ascending support level.
- With that, support stands at 30.80%.
- Technical indicators remain bearish.
The Bitcoin dominance rate approaches a yearly low and might touch a record low if the downtrends persist.
Bitcoin has seen its market dominance declining since 20 October. That was when Bitcoin dominance was at a 47.72% peak. Initially, an ascending support level that existed since the start of September halted the decrease in BTC dominance. However, Bitcoin’s dominance bounced at this support on 7 November.
Meanwhile, the bounce did not stay long, and an ascending support breakdown happened on 19 November. The coin validated this line as its resistance the next day.
The Moving Average Convergence Divergence and Relative Strength Index have their readings supporting the breakdown highlighted above. The momentum indicator RSI has dropped beneath the 50-level. The reading indicates bearish trends, and the last time such a move happened, a downtrend followed.
Also, the Moving Average Convergence Divergence remains negative while decreasing. That shows that the near-term trend is slower than the long one. For now, Bitcoin dominance has the closest support at 39.80%, formed by yearly lows.
Will BTC Dominance Touch a Record Low?
@robw00ds, a crypto trader, presented an inverted Bitcoin dominance chart that indicates the coin’s dominance dropping to a new record low. Meanwhile, the weekly chart does not support the claims.
Keep in mind that a bullish divergence by the RSI preceded the September-October bounce. That was a bullish scenario that leads reversals in trends. However, a concealed bearish divergence by the same indicator negated the narrative.
Moreover, the Relative Strength Index remains beneath the 50-mark, a bearish trend signal. Also, the Moving Average Convergence Divergence is negative. Besides the long-term support level mentioned above, Bitcoin dominance has no other supports until touching a record low.
Keep in mind that a fall in Bitcoin dominance means surges in the altcoin market share. While publishing this article, Bitcoin struggles to recover as it trades with bearish signals at $56,749. What are your views on this content? Feel free to share your comments in the section below.