BTCD could be rejected by long term resistance
The BTCD follows a long term resistance line.
The rate is facing resistance at 66.5% and has support at 62.5%
Technical indicators are bullish but have short-term weaknesses.
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The Bitcoin Billionaire dominance rate (BTCD) reached an important resistance area, which will likely result in rejection. Despite its ongoing rally since September, it is not yet clear whether the long-term trend is bullish or not.
The BTCD has been rising since early September and has just reached a descending resistance line in place since July 2019. This is the fourth time it has validated this resistance line.
In addition, the line coincides with the fibonacci level 0.618 of the entire decline, which increases its importance. If the price were to be rejected, the closest major support area would be 62%.
Despite the ongoing rally, technical indicators have not yet taken a resolutely bullish turn. The RSI has moved above 50 but the MACD is below 0, and the Stochastic Oscillator has yet to generate a bullish cross.
Therefore, we cannot predict with certainty that the rate will break through its current resistance.
Cryptocurrency trader @ anbessa100 shared a chart of the BTCD, claiming that the rate has finally reached the resistance of 66.5%. This area coincides with the descending resistance line that we have highlighted, and could serve as a top.
In order to determine if this theory is plausible, it is necessary to look at smaller time scales.
The daily chart shows that the 66.5% area has served as support previously as well, making it all the more significant.
Despite this parabolic rally, technical indicators have yet to show any weakness, even though they are showing overbought conditions.