š $BTC Pumping + BTC Dominance Dropping = Altcoin Rally Setup
1. $BTC Pumping:
When Bitcoin rises, it typically brings broader market confidence. Money flows into BTC first as a "safe" crypto bet.
2. $BTC Dominance Dropping:
This means that while BTC is going up, altcoins are rising faster in percentage terms. Capital is rotating into higher-risk, higher-reward plays (altcoins).
3. Implication:
Investors are taking profits from BTC and funneling them into altcoins ā a clear sign of bullish sentiment and increasing risk appetite. This often precedes or marks the beginning of a mega altcoin season.
---
š What to Watch for:
ETH/BTC strength ā Ethereum leading is often the first sign of an alt rally.
Layer 1s & DeFi tokens ā These usually pump first (SOL, AVAX, INJ, etc.).
Memecoins and low caps ā These tend to pump last, often marking the top of the rally.
---
ā ļø But Also Keep in Mind:
Altcoin rallies can be explosive but volatile.
This setup is bullish, but always manage risk ā don't go all-in without a strategy.
Watch BTC closely: if it crashes, altcoins usually get wrecked harder.