After creating a bullish pattern, the Bitcoin Dominance Rate (BTCD) has broken out from a nearly yearlong descending resistance line.
On Jan 2022, BTCD bounced at the 40% long-term support area for the third time (green icons). This bounce initiated the current upward movement, which has so far led to a high of 45.25%. BTCD has not reached a close below this area since early Jan 2018.
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The bounces effectively created a triple bottom, which is considered a bullish pattern. The fact that the pattern has been created inside such a long-term support area increases its significance.
If the BTCD upward movement continues, the closest resistance area would be at 52.30%. This is the 0.382 Fib retracement resistance level, when measuring the entire downward movement since Jan 2021.
Besides the creation of a bullish pattern, the RSI has moved above 50. Prior to this increase, the RSI had been below 50 for 462 days. Readings above 50 are considered bullish. As a result, this suggests that the continuation of the upward movement is expected.
BTCD attempt at breaking out
Cryptocurrency trader and investor @eliz883 tweeted a BTCD chart that shows it attempting to break out from a descending resistance line.
Since the tweet, BTCD has already moved above this resistance line with a decisive breakout. This increase led to a new yearly high.
In turn, this upward movement is also supported by the RSI breakout and increase. Even though the indicator is in overbought territory, it has not yet generated any bearish divergence. As a result, it seems likely that the upward movement will continue.
Prior to the aforementioned resistance at 53.20%, there is minor resistance at 47.20%. If BTCD is successful in moving above it, the acceleration of the increase towards 53.20% would be likely.
For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here
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