Bitcoin Dominance : Short-Term Breakdown Analysis
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Current Status :
Bitcoin dominance (BTC.D) is forming a corrective wave pattern (ABCDE) within a descending wedge, indicating a potential bearish breakdown.
Resistance Levels :
Major Resistance :
60% dominance level remains unbroken, serving as a key ceiling.
Intermediate Resistance :
57.75% is a short-term resistance trendline in the pattern.
Support Levels :
Primary Support : 56% dominance, key for immediate stability.
Breakdown Target : A move below 55% could lead to 52.5% and eventually towards 50%.
🔍 Indicators :
RSI : Currently at 32.78, nearing oversold territory, indicating potential short-term relief before continuation of the downtrend.
AO (Awesome Oscillator) : Shows bearish momentum, confirming downward pressure.
📉 Analysis :
The chart suggests BTC dominance is losing strength within the corrective structure. If the G-F leg breaks below the wedge support, a sharp collapse may follow, aligning with altcoin gains.
Conclusion : Bitcoin dominance is poised for a short-term drop unless it reclaims key resistance levels. Traders should monitor dominance closely to capitalize on altcoin opportunities.
Pro-Tip :
Action : Shift focus to altcoins during BTC dominance drops as they often rally during these periods.
Risk Management : Stay cautious near critical supports; invalidation above 60% resistance.