Bitcoin Dominance, RSI Bearish Divergence & Decreasing Volume
Market Cap BTC Dominance, % CRYPTOCAP:BTC.D
This is a classic signal and we are going to be looking at it on two different timeframes, daily and weekly.
Bitcoin Dominance (BTC.D) is producing a strong bearish divergence with the RSI. The weekly timeframe is very pronounced and I will show you the details below. This type of signal tends to support a change of trend. It appears before the reversal happens but sometimes it can take years before it goes into effect.
» BTC.D Weekly RSI
Here you can see the RSI peaked October 2023. Then a lower high October 2024, then again in April 2025 and finally last month.
As the RSI produces lower highs BTC.D is producing higher highs.
This signal is supported by decreasing volume. Bitcoin Dominance continues to climb higher while trading volume continues to drop. Both signal support a change of trend soon and together they become stronger.
» BTC.D Daily RSI
The daily RSI peaked June 2023 but we will focus on the short-term as we already have a strong signal coming from the weekly.
Here we have a peak in May 2025 and a strong lower high in June. Needless to say, BTC.D peaked 27-June thus the divergence but the action is clearly weak.
» Bitcoin daily
There is a long-term rising wedge on the weekly timeframe and this pattern can also support a reversal.
All these signals are bearish but not very strong, still, there is some weakness on the bearish side for this index. This means that the action can turn bearish tomorrow or it can continue rising for weeks or months before turning red.
These signals are pointing to a reversal but they do not give us a specific date. Can happen next week, next month or in seven months. If we focus on the altcoins, the way they are looking and how long will it take for them to grow, then this index can turn bearish within 2-4 weeks. Bitcoin will also grow as the altcoins market grow. Everything Crypto will grow in late 2025.
Thanks a lot for your continued support.
Namaste.
source https://www.tradingview.com/chart/BTC.D/nIm1jtbb-Bitcoin-Dominance-RSI-Bearish-Divergence-Decreasing-Volume/
