Why do we sometimes see altcoins decline when Bitcoin's price is stable or fluctuating?
What is the relationship between Bitcoin's dominance and other currencies?
100% market liquidity = Bitcoin dominance 64%
Altcoins 46%
When Bitcoin dominance rises, it means that funds are moving toward Bitcoin and neglecting other altcoins. This often happens when:
•Altcoins fall or fluctuate weakly
•Investors prefer the relative safety of BTC during periods of fear or correction
When dominance declines, it's an indication that:
•Liquidity is shifting from BTC to altcoins
•We may witness an "altseason" wave and strong gains for a number of projects
Always monitor the dominance indicator, as it charts the market's liquidity!
Please manage your risk and don't rush into waves without technical confirmation ✨.
$BTC Has slowly been crawling back up into the green area on the Rainbow Chart 🌈
With lower highs each cycle, I think we could already be very happy if price were to visit the green-yellow region this time around. Especially seeing how mature and large the market has become.
Cycles are slower and less extreme than before. This does make it easier to weather the volatility but it also diminishes the insane gains we might have seen in previous cycles.