Guide to the Dominance Cycle of Bitcoin

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🔑 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.
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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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