$BTC 📉 What is the impact of Bitcoin's dominance on the altcoin market?
🟥 1. Decline in altcoin prices
If Bitcoin dominates the market, liquidity exits altcoins, leading to a drop in their prices.
🟨 2. Decrease in trading volumes
Traders and investors move towards Bitcoin only, resulting in lower volumes in other cryptocurrency markets.
🟩 3. Opportunity to buy in the future
When altcoins weaken significantly against Bitcoin, they may be seen as a buying opportunity at the beginning of a new season for them (Altseason).
⏳ When does the altcoin season (Altseason) start?
It usually begins when:
The price of Bitcoin stabilizes after a strong upward wave.
The Bitcoin dominance ratio decreases.
Liquidity starts to shift towards smaller coins.
Some altcoins rise significantly (100% or more within days).
📌 Summary
Bitcoin dominance is an important measure for understanding market sentiment.
An increase indicates greater confidence in Bitcoin or fear of risk.
A decrease indicates the beginning of liquidity spreading into other coins.
Understanding the relationship between Bitcoin and altcoins is crucial for making successful trading or investment decisions.
