🔑 Understand the market trend with the dominance of BTC and maximize your trading opportunities.
How does the dominance of Bitcoin impact the market?
🟢 BTC Dominance INCREASES:
BTC price INCREASE → 🔴 Altcoin DOWNSample: BTC increases from $30,000 to $35,000 → Altcoin decreases as money flows into BTC.+ BTC price DECREASE → 🔥 Altcoin DUMPSample: BTC decreases to $25,000 → Altcoin decreases even more due to panic selling.+ BTC price STABLE → 🟡 Altcoin STABLESample: BTC stabilizes around $30,000 → Altcoin shows minimal fluctuations.
🟡 Stable BTC Dominance:
BTC Price INCREASES → 🟢 Altcoin INCREASES
For example: BTC steadily increases → Confidence spreads to alternative cryptocurrencies.
Stable BTC price → 🟡 Stable AltcoinFor example: Both BTC and altcoin are trading sideways for prediction.+ BTC price DECREASES → 🔴 Altcoin DECREASESFor example: BTC decreases slowly → Altcoin also follows the decreasing trend.
🔴 BTC Dominance DECREASED:
BTC price INCREASES → 🌟 Altcoin season begins!
For example: BTC attracts attention while altcoins explode with a higher growth rate of %.
BTC PRICE DECREASE → 🟡 Altcoin STABLEFor example: BTC is correcting, but altcoins still maintain their position due to the decrease in dominance.+ BTC PRICE STABLE → 🟢 Altcoin INCREASEFor example: BTC stable → Investors shift profits to altcoins.
Professional tips for spotting market opportunities
🔍 View dominant trends:Increasing dominance = Focus on BTC.Decreasing dominance = Diversifying into alternative cryptocurrencies.📊 Practical example:Altcoin season (e.g., 2021): BTC dominance decreases from 70% to 40%.Altcoin collapse: BTC dominance spikes above 50%.⚡ Key metrics to monitor:Bitcoin dominance % (TradingView: BTC.D).Market capitalization trend of Altcoins vs. BTC.
How to profit in each stage
🟢 BTC Dominance INCREASEDFocus on BTC trading (buy position).Avoid too much exposure to altcoins.🔴 BTC Dominance DECREASEDTransfer profits from BTC to altcoins for higher returns.Look for altcoins breaking important resistance levels.🌟 AltseasonBe aware of dominance dropping below 50%.Diversify into strong altcoin areas like DeFi or Layer 1 tokens.
Final point
📈 Understanding the dominance of Bitcoin = Predicting the Altcoin season.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Guide to the Dominance Cycle of Bitcoin
🔑 Understand the market trend with the dominance of BTC and maximize your trading opportunities.
How does the dominance of Bitcoin impact the market? 🟢 BTC Dominance INCREASES: