$BTC - the largest and most liquid asset in our space, and if alt X rises against the dollar but falls against BTC, it means that capital in it is growing slower, which means it is lagging behind the main trend and not attracting the dominant flow of liquidity.

The growth of ALT/BTC is a signal that capital is ready to take on greater risk, flowing from safe havens into more volatile assets.

When the ALT/BTC market structure transitions into a bullish phase, it heralds a period when altcoins begin to dominate over BTC.

In pairs with the dollar, altcoins can show growth simply due to the overall bullish trend of BTC, but with the help of ALT/BTC analysis, you can see the pure relative strength or weakness, unmasked by dollar price inflation.

If ALT/BTC breaks key resistances - it is often stronger than just growth relative to the dollar.

I use this chart to understand where capital will work more effectively.

If ALT/BTC starts to show signs of strength, I always aim to switch to alts - this is my marker of increasing risk appetite and trust in the market.