Hello traders! Today we will observe the Bitcoin Dominance (BTC.D) chart on a Daily timeframe. Since BTC dominance has reached 73% high on September 5, BTC.D continues to move down and currently trading at 65%.
Lower lows and lower hight are being printed, indicating the validity of the downtrend. BTC.D broke below the 200 Exponential Moving Average and we can see that it is trading within the extended descending channel.
Right now, Bitcoin Dominance is producing a potential double top near the 50% Fibonacci retracement level. Prior to that price bounced off the 23.6% retracement at 68.10 and then broke below the 200 EMA.
If current resistance at 66.44% will hold, BTC.D should continue to go south and soon can reach 61.8% Fibonacci retracement level at 60.14.
But at the same time, key resistance is located at 68.10 where BTC dominance could also retrace before and if it goes down.
To summarise, the trend does look bearish and we are likely to see more downside pressure, in which case some altcoins will be outperforming the Bitcoin.
Bias: Bearish while below 68.10%
Potential Resistance Zone: 66.44 – 68.10%
Potential Targets: 60.14%
Have a profitable trading!