- BTC.D rises in price as altcoins suffer a bloody day in cryptocurrencies.
- BTC.D attempts to break above the 8-day and 20-day exponential moving averages as altcoins struggle to hold their key support.
- BTC.D price anticipates a 48% rally as this could spell more pain for altcoins.
Many altcoins have seen a relief bounce in the market as Bitcoin Dominance (BTC.D) remains below the 40% marked area, allowing altcoins to rally when the market recovers. With Bitcoin Dominance (BTC.D) rising from the ashes, we could see the altcoin price suffer more than expected if the price surges 50%.
Bitcoin Dominance is the percentage of the total cryptocurrency value that is made up of Bitcoin. Its basic premise is that as BTC dominance increases, the value of altcoins decreases.
After showing relief bounces and the crypto market cap looking ready to rally to a high in hopes of altcoins joining the party, this fell short as many altcoins saw a price drop, and many they lost their key support with more change to go lower as the price of BTC.D continues to rise.
Bitcoin (BTC.D) Dominance Price Analysis on Weekly Chart
Many altcoins have shown as much strength as the rally, with others producing double-digit gains along with BTC.D falling as there is not much of an effect from Bitcoin during the price pullback.
With BTC.D poised to break its long downtrend, this could affect the price of altcoins as BTC experiencing a downtrend could affect altcoin performance and the time required for altcoins to bounce back from the pullback.
BTC.D saw a rally to a high of 72% as most altcoins were inactive during this period with no real price movement despite BTC seeing a good price movement. The rise of BTC.D is a downside for most altcoins as this generally affects their upside movement and suffers further downside when prices pull back.
Altcoin performance is better when the value of BTC.D is below the 30% mark area, as this helps altcoins to react faster and better to falling prices when BTC goes down. If the price of BTC.D breaks and closes above 41.5%, this could mean that altcoins will suffer more when BTC falls back in value, as the impact on altcoin prices will be greater.
Weekly resistance for BTC.D – 41.5%.
Weekly support for BTC.D – 40%.
BTC.D price analysis on the daily chart (1D)
On the daily time frame, BTC.D faced rejection at the 48% mark as the value declined to 38% where it formed good support to bounce off that region. The value of BTC.D continued to vary in value as it formed an ascending triangle with price breakout. A breakout and close above 41.5% would mean that altcoins will suffer a further price drop when the value of BTC declines.
Daily resistance for BTC.D – 43.1%.
Daily support for BTC.D – 38.5%.
Featured Image From zipmex, Charts From Tradingview