Understanding the basic components of the table:
The table consists of three main columns:
🟣 Value of Altcoins: Reflects the performance of other cryptocurrencies that are not Bitcoin.
🟣. Market value of Bitcoin (BTC): Represents the price of Bitcoin or its market value.
🟣. Bitcoin Dominance: The percentage that Bitcoin represents of the total value of the cryptocurrency market.
The aim of the table:
It illustrates the relationship between:
🌟- Bitcoin Dominance (BTC.D).
🌟- Price of Bitcoin (BTC).
🌟- Their impact on the performance of altcoins.
Step-by-step analysis of the table:
🟠 Why does Bitcoin rise while altcoins fall?
- Reason: Rising Bitcoin Dominance (BTC.D).
- Interpretation: Liquidity moves from altcoins to Bitcoin, leading to a decline in their value (the first line in the table).
🟠. Why do altcoins drop sharply when Bitcoin falls?
- Reason: Rising Bitcoin Dominance (BTC.D) with a falling price of Bitcoin (BTC).
- Interpretation: A drop in Bitcoin is accompanied by liquidity moving away from altcoins, exacerbating their decline (the second line in the table).
🟠. When do altcoins rise and recover?
- Basic condition: Decreased Bitcoin Dominance (BTC.D).
- The only two cases:
- Case one: Decreased Bitcoin Dominance with a stable or rising price (the fourth line).
- Case two: Decreased Bitcoin Dominance with a limited drop in its price (the sixth line).
- Interpretation: A decrease in dominance means liquidity is moving towards altcoins, supporting their rise.
🥳Practical benefit:
By understanding this table, you will be able to:
✅- Predict altcoin movements (positively or negatively).
✅- Understanding market dynamics based on Bitcoin behavior and its dominance ratio.
⭐️⭐️⭐️ Final advice:
Always monitor the Bitcoin Dominance (BTC.D) with the price of Bitcoin (BTC) to accurately determine the overall market trend and altcoins.
