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BTCD temporarily stopped its decline with a bullish candlestick last week, but barely managed to create a bullish close.
If the descent continues, the primary support levels are at 55.70% and 52.70%, respectively, at the 0.328 and 0.5 Fibonacci retracement support levels.
The decline in Bitcoin dominance was preceded by bearish divergences (orange) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).
Since then, the RSI has fallen below 50 while the MACD has made a bearish cross. Discounting a false signal in December 2024, this has not happened since the bull run started.
The weekly Bitcoin dominance graph suggests that altcoin season has begun and Bitcoin’s dominance will wane for the rest of the year.
The short-term six-hour chart confirms this, suggesting BTCD is in wave four of a five-wave downward movement (red), which has developed into a symmetrical triangle.
Once the triangle breaks down, Bitcoin’s dominance could fall to 59.15% before a temporary bounce.
Altcoin Rally Soon?
One extremely bullish chart is the crypto market cap, excluding the top 10 altcoins.
This graph, which contains the price movement of medium—and small-cap altcoins, shows extremely bullish price action and wave count readings.
Small altcoins are far from their cycle and all-time highs, but that could change soon.
Altcoin Market Cap Chart | Credit: Valdrin Tahiri/TradingView
The chart shows a reclaim and retest of the $285 million support area, where the altcoin cap has created a double bottom pattern.
The RSI and MACD have generated hidden bullish divergences, a sign that trend continuation will follow.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
