$BTC When evaluating $BTC, it's easy to look only at its price. However, a key metric for understanding the entire market is Bitcoin Dominance ($BTC.D). This chart shows Bitcoin's share of the total cryptocurrency market value, and its movement tells a story about where money is flowing.

Here's how I interpret it:

When both the price of $BTC and its dominance are rising, it suggests that capital is consolidating in Bitcoin. This can be a challenging environment for other cryptocurrency assets.

When the price of $BTC rises but its dominance falls, it often indicates that profits may be moving towards other projects, potentially lifting the overall market.

When the price is falling while its dominance is increasing, it may indicate a flight to relative safety, and caution is generally advised.

By tracking Bitcoin's dominance along with its price, I get a much clearer picture of market sentiment before diversifying my portfolio. It is a crucial part of my risk assessment.