Bitcoin dominance (BTCD) struggles to resist resistance, trend remains uncertain

The BTCD is moving within the resistance of 64.12% to 64.91%.

Long term technical indicators are bullish.

The ETH / BTC pair broke and re-tested the 0.0295 ฿ area.

Bitcoin’s Dominand Rate (BTCD) is currently moving within a crucial resistance zone, both horizontal and diagonal.

Whether or not the Bitcoin Loophole goes above this resistance will be a major factor in determining its future trend.

Bitcoin dominance seeks to overcome resistance

The BTCD suffered a rejection on November 8. That spawned a steep drop, which took it to a low of 60.80% on November 24. Since then, the BTCD has been gradually rising.

It is currently moving within the 64.12% -64.91% resistance created by the 0.5 and 0.618 fibonacci retracement levels. If it regains this area, it would go a long way in indicating that the trend is up.

The technical indicators in the daily data have already turned bullish, which supports the possibility of a passage of resistance. The uptrend would likely be confirmed by a positive cross in the Stochastic Oscillator.

The importance of this resistance is all the more reinforced when we look at the weekly data. The resistance zone coincides with a resistance line that has been in place since September 2019. So far, this line has been validated four times.

Passing above the line would likely result in a rapid upward movement. On the contrary, the closest support zone is at 62%; a move below the latter would likely cause a rapid drop towards the 52-56% range.

Technical indicators are bullish which supports the possibility of a crossing of the resistance line

Cryptocurrency trader @TradingTank shared a BTCD chart showing an ascending wedge pattern. He claims that going above or below this figure will be a determining factor in whether an altcoin season begins.

The ascending wedge is considered to be a bearish pattern, and the movement it contains appears corrective. Additionally, the RSI is showing an unconfirmed bearish divergence.

While this suggests a likely move below the bevel, the bullish aspect of the larger timescales is not clear as to whether this will push price to new lows, or to an upper low.