As we can see in the lower chart, the Bitcoin Dominance (BTC.D) recently broke its resistance & is now testing the weekly 200EMA and is not far from reaching the 200MA which is right at the next resistance at roughly 52%!
We will need to wait & see if it will break and hold or reject the 200MA before we expect a retest back to the resistance at the 48% level which is now new support.
On the flip side, whilst the BTC.D has broken out, the ETH.D chart looks to be breaking the long-term green trend-line which has held since 2020. If a candle does close outside of this trend-line, we could expect to see a pullback to retest the 200EMA at roughly 17% which was also support for a period or the 200MA at 15% level which of course will mean BTC is continuing to lead the market.
However, if it closes within the green trend-line, then the likeliness is that the BTC.D rejected the 200MA and is heading back to retest the breakout area and the ETH.D will have its golden chance at too breaking its resistance at the 21% level.
We will need to wait & see if it will break and hold or reject the 200MA before we expect a retest back to the resistance at the 48% level which is now new support.
On the flip side, whilst the BTC.D has broken out, the ETH.D chart looks to be breaking the long-term green trend-line which has held since 2020. If a candle does close outside of this trend-line, we could expect to see a pullback to retest the 200EMA at roughly 17% which was also support for a period or the 200MA at 15% level which of course will mean BTC is continuing to lead the market.
However, if it closes within the green trend-line, then the likeliness is that the BTC.D rejected the 200MA and is heading back to retest the breakout area and the ETH.D will have its golden chance at too breaking its resistance at the 21% level.