The Bitcoin dominance rate looks primed for a short-term increase and breakout from its pattern. However, its long-term prospects still remain gloomy.
The Bitcoin price has been decreasing since making a rapid upward move on October 25. However, an interesting development is the fact that altcoins are not losing much value against Bitcoin. Therefore, their rate of decrease is the same or slower than that of BTC.
This is somewhat uncommon. Previously, during rapid BTC price increases or decreases, altcoins usually bleed out. This divergence in trend has led many to call for the beginning of “altseason” — a period in which altcoins experience very significant price increases.
Cryptocurrency analyst and trader @cryptoamsterdam stated that the Bitcoin dominance rate might be ready to increase after a period of consolidation. At the time of writing, it was breaking out in short-term time frames.
Bitcoin dominance breaking out on the lower time frames after a fews days of consolidation at support.
— CryptoAmsterdam (@damskotrades) November 19, 2019
Long-Term Bitcoin Dominance
The long-term Bitcoin dominance rate shows strong resistance at 72.5 percent. Once the price reached it in September, it began to decrease.
Furthermore, we can see a bearish divergence in the RSI which is at its highest levels yet.
Additionally, we have a bearish cross in the MACD, which usually preceded downward moves.
Looking at the daily chart, we can see a possible descending triangle developing.
The Bitcoin price is currently at the resistance line of the triangle. A breakout above it and the wick resistance at 68.6 percent could trigger a rapid price increase.
However, due to the bearish outlook of the long-term chart, we believe this increase would end at a maximum of 70.5 percent.
To conclude, while the Bitcoin dominance rate might increase in the short-term, it looks to have reached a top and we expect it to decrease during the upcoming month.
Do you think the Bitcoin dominance rate will increase or will “Altseason” begin? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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