Following rejection from the 48 percent resistance area, the Bitcoin Dominance Rate (BTCD) Sharply Declines

Following rejection from the 48 percent resistance area, the Bitcoin Dominance Rate (BTCD) Sharply Declines

Since it was rejected on June 11, the Bitcoin dominance rate (BTCD) has decreased. The odds favour a continuation of the long-term positive trend, nevertheless. 

Between May and December 2021, BTCD formed a triple bottom pattern at the 40 percent long-term support level. The triple bottom is regarded as a bullish pattern, which indicates that it frequently results in breakouts. 

The pattern also included a bullish divergence in the weekly RSI, which further supported its validity. Additionally, the bullish divergence's trendline is still visible, and the RSI is currently bouncing off the 50 line.

A graphic of BTCD showing an ongoing rejection was tweeted by cryptocurrency trader @CryptoGemsMiner. Twitter, a source Since breaking out from a declining resistance line on May 11, as seen on the daily chart, BTCD has been rising at an accelerated rate. On June 11, it increased to a peak of 48.55 percent. Then it was denied (red icon) and dropped suddenly. In terms of assessing the most recent increase, it is currently trading around 43.50 percent, which also serves as a horizontal support area and the 0.5 Fib retracement support level. 

Therefore, it's probable that it will start a reversal, at least temporarily. If a bounce occurs, the closest resistance region is at 46 percent, according to the two-hour chart. Therefore, the weekly RSI shows that the circumstances for a bullish continuation are in place. The nearest resistance level would be at 52.3 percent if the reversal holds. 

This is a horizontal resistance area and the 0.5 Fib retracement resistance level. The future trend may be affected by BTCD's ability to regain it or by its rejection.