After forming a triple bottom, the Bitcoin Dominance Rate (BTCD) surges sharply
The Bitcoin Dominance Rate (BTCD) has burst out of a nearly year-long falling resistance line after producing a bullish pattern.
BTCD bounced for the third time in a row in January 2022 at the 40% long-term support area (green icons). The current upward advance, which has so far reached a high of 45.25 percent, was begun by this bounce. Since the beginning of January of this year, BTCD has not been close to this level.
In the end, the bounces formed a triple bottom, which is considered a bullish trend. The pattern’s importance is amplified by the fact that it was formed inside such a strong support zone.
BTCD’s next possible resistance level is 52.30 percent, if the current rising trend continues. Resistance at this point is 0.382 fib levels for the whole negative trend from January 2021.
In addition to forming a bullish pattern, the RSI has now above 50. The RSI has been below 50 for 462 days prior to this rise. Bullish readings are defined as those over 50. In other words, this predicts that the rising trend will continue.
@eliz883 posted a BTCD chart that shows the cryptocurrency struggling to break free of a falling resistance line.
Because of the tweet, the price of BTCD has already surged decisively over this resistance level. A new annual record was set as a result of this rise.
In turn, the RSI breakout and rise help to sustain this upward trajectory. Despite the fact that the signal is overbought, no bearish divergence has been formed. The increasing trend is thus expected to continue.
Minor resistance exists at 47.20 percent prior to the previously indicated obstacle at 53.20 percent. If BTCD is able to surpass it, the growth to 53.20 percent is expected to accelerate.