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The Bitcoin dominance rate has increased by three percent over the past four days.
While the Bitcoin price has been steadily decreasing over the course of December, its dominance rate has done the opposite. This indicates that altcoins are still following the lead set by Bitcoin — and doing so at a more accelerated rate.
Cryptocurrency trader @davthewave stated that the Bitcoin dominance rate has been going up as he predicted. (We stated the same in our article from last week.)
B Dom moving up as predicted. That Bitcoin dominance and the better alts are both moving up together represents money on the sidelines of Crypto coming in… pic.twitter.com/NTw35QYhS7
— dave the wave (@davthewave) December 19, 2019
How long will the Bitcoin dominance rate continue to increase? Keep reading below if you want to find out.
Ascending Support Line
The Bitcoin dominance rate has been following an ascending support line since the beginning of April. The line has been validated three times — most recently, on December 16.
Since then, the rate has been increasing. It moved above the October 27 high at 70.5 percent and is currently attempting to move towards the next resistance at 71.5 percent.
Bitcoin Dominance Double Bottom
Looking closer, we can see that the Bitcoin dominance rate made a double bottom at 68 percent. This was combined with bullish divergence in both the RSI & the MACD.
Since the rate has moved above the October 27 high, which was the high point between the two bottoms, projecting the height of this pattern at the breakout level gives us a target of 73 percent — very close to the next resistance area created by the highs of November 5.
Future Movement
The Bitcoin dominance rate has been increasing since January, which interestingly was the all-time high and beginning of the current correction. Every time it has made a higher low, the rate of increase has intensified. In the long-run, this is unsustainable.
The RSI generated bearish divergence in oversold territory 3 the first time it had reached it. While a small decrease ensued as a result, we do not believe that is the end of it.
The strongest resistance area is found at 76 percent, which we believe is the upper limit of this current move.
To conclude, the Bitcoin dominance rate has began to increase. We believe this increase has an upper limit of 76 percent. The rate should be close to reaching a top and a long corrective period awaits.
The post Is the Bitcoin Dominance Rate Heading for New Highs? [Premium Analysis] appeared first on BeInCrypto.
from BeInCrypto https://beincrypto.com/is-the-bitcoin-dominance-rate-heading-for-new-highs-premium-analysis/
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