Bitcoin price falls, and dominance index grows
Bitcoin Dominance Index is trading under strong 66.5% resistance, strengthened by several DMA.
BTCD dominance index strengthens amid falling bitcoin rate.
Course MTC broke through the important support of $ 9450, which is an bearish signal.
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Today the Bitcoin Dominance Index (BTCD) is at very important levels – in the region lines upward support, which remains at graphics from 13 February. A break below this mark promised the index a fall towards the 64.5% support area.
Between themes at the top, there is strong resistance formed by the 50-, 100- and 200-day moving averages (MA), wherein The 50- and 200-day MAs are close to a bullish crossover formation. So big quantity resistance levels makes it difficult for the bulls to turn all these levels into support.
In addition, the BTCD dominance index also trades within the symmetrical triangle as it follows the short-term line since May 14. resistance. Now the price has come very close to the supposed border of this pattern, and this can mean that very soon she will have to make a choice and decide on the further direction of movement.
Correlation with bitcoin
However, we are now seeing an interesting trend: time as a course BTC decreases, the BTCD index moves in the opposite direction. And since on moment writing of this analysis on market there was an aggressive collapse bitcoin, can suggest that it is potentially capable of giving the BTCD an impulse for bovine breakthrough the above triangle.
More Togo, as shows history, growth of BTCD dominance index may provoke sharp movements of the currency in both directions. Accordingly, its collapse, and subsequent a vigorous rebound could trigger a bullish breakout of the triangle.
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What Bitcoin is doing
As for the bitcoin rate itself, today it lost an impressive $ 800 + within the day. Pulling back from the morning high of $ 9,975, cryptocurrency began to lose ground and as a result, at the time of writing the analysis, managed to collapse nearly to the round mark of $ 9000.
During the fall, the pair broke through the support area of $ 9450 and the 600-hour moving average. From here the price bounced three times in June, but each subsequent bounce turned out to be weaker than the previous one, and the trading volumes accompanying bearish candles were higher. A similar pattern indicates long-term bearish signals, about which we already wrote Today, warning of the danger of losing support $ 9450.
Also, in the process of falling price pierced and the next region support for $ 9200 though now there was a vigorous rebound from the peak lows. And at the time of writing a couple again traded over $ 9200. Further support located in district $ 8600.
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