The Bitcoin Dominance Rate (BTCD) is in the process of breaking out from a long-term descending resistance line. Doing so would likely put a pause on the hope of another coming altseason.
Technical indicators are bullish and support the possibility of a breakout.
BTCD’s Long-Term Resistance
BTCD is currently trading above a long-term resistance line that has been in place since Sept 2019. While the price has moved above this line several times, it has failed to reach a close above.
There is strong resistance at 67%. A close above would confirm that BTCD has broken out and will continue moving upwards. Conversely, the closest support area is at 62%.
Technical indicators on the weekly time-frame are bullish, supporting the possibility of a breakout, especially since the Stochastic Oscillator has just made a bullish cross.
Cryptocurrency trader @DTCCryptotrades outlined a chart showing a channel that previously rejected the bulls. They state the same is likely to occur again.
The channel coincides with the resistance line we have drawn, and a breakout above would definitely confirm that BTCD is heading upwards.
To provide a more accurate prediction, a look at the lower time-frames is required.
The daily chart is similarly bullish. BTCD has regained most of its losses resulting from the Nov. 18 rejection and is once more attempting to reach the highs.
Technical indicators on the daily time-frame are bullish, which would be confirmed by a bullish cross from the Stochastic Oscillator (green arrow)
The shorter-term two-hour chart shows the first signs of weakness. BTCD has been rejected by the minor 66.65% resistance area and created a long upper wick.
Nevertheless, technical indicators are still bullish.
Therefore, unless BTCD breaks down from the current short-term ascending support line, it will likely break out from the long-term resistance line and continue moving upwards.
To conclude, the BTCD chart looks bullish. A weekly close above the long-term descending resistance line and ideally the 67% resistance area would confirm this and indicate that BTCD will continue heading higher.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.