Triple bottom pattern
From May 2021 to January 2022, BTCD bounced 3 times from the 40% long-term support zone, creating 3 bottoms, which is considered a bullish pattern.
This pattern is combined with a strong bullish divergence in the weekly RSI. Such divergences often herald a bullish trend reversal. In the first week of May, the RSI showed a bullish sign when broke out above the 50 level.
If the upward movement continues, the closest resistance zone will be 52,3%. This is the 0.382 Fib retracement resistance level.
BTCD breakout
The daily chart shows BTCD broke through a bearish resistance line on May 11. This move led to a new high of 47,7% on June 6, which is also a new yearly high.
The main resistance zone is found at 48.3% and has yet been broken since May 2021.
Although the daily RSI has been deeply in the 29-day overbought zone, there has been no bearish divergence yet. So while the weekly chart is bullish, the daily chart shows a possible rejection at the 48% resistance area.
ETH/BTC
Ethereum (ETH) is the biggest altcoin ranked by market cap so its movement affects strongly BTCD.
The weekly chart looks bearish. Meanwhile, the RSI has moved below 50, showing another sign of the downtrend.
If the downward movement continues, the closest support zone will be at ₿0.044. This is the 0.618 Fib retracement support level.
*Note: Bitcoin dominance rate is symbolized as BTC.D, we use BTCD to avoid too many dots in sentences.
Disclaimer: This article is for reference purposes only, not investment advice. Investors should have deep research before investing. We are not responsible for your investment decisions.
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