Understanding the Full Bitcoin Dominance Cycle (I am sure no one told you like this 👀)
BTC Dominance (BTC.D) Increases + BTC Increases → ALTs DecreaseClassic scenario during the start of a bull run.Capital flows heavily into $BTC as confidence grows in the market.Example: Bitcoin pumps past $30k, while most #Altcoins remain stagnant or even drop.BTC.D Increases + BTC Decreases → ALTs DecreaseBearish market sentiment across the board.Investors prioritize Bitcoin’s stability over risky assets like Altcoins.Example: BTC falls from $60k to $50k, dragging all assets with it, including #Altcoins.BTC.D Increases + BTC Stable → ALTs DecreaseBitcoin holds its position, but dominance rises as Altcoins lose appeal.Example: BTC at $40k for weeks, Altcoins bleed out due to lack of interest or momentum.
BTC.D Decreases + BTC Increases → ALTs IncreaseBeginning of Altseason.As Bitcoin grows, profits flow into Altcoins, causing explosive moves.Example: BTC breaks $90k, Ethereum and large caps (e.g., $SOL, $ADA) rally hard.BTC.D Decreases + BTC Decreases → ALTs StableMarket slows down; Bitcoin drops, but Altcoins hold ground or consolidate.Example: BTC drops to $50k, but $ETH and other Altcoins maintain recent gains.BTC.D Decreases + BTC Stable → ALTs IncreaseAltseason in full effect.Bitcoin consolidates while Altcoins see massive inflows.Example: BTC at $75k, but $SOL jumps 3x, and micro-cap #Altcoins explode.
Key Takeaways from BTC Dominance Cycle
BTC.D Increase = Focus on BitcoinRising dominance means capital is flowing into Bitcoin, often at the expense of Altcoins.This phase is typical in early bull runs or during bearish conditions.BTC.D Decrease = Altseason PotentialAs dominance drops, it signals a shift of capital from Bitcoin into Altcoins.Look for Altcoins with strong fundamentals and narratives to lead this phase.BTC’s Trend Dictates MomentumUptrend = Altcoins follow after Bitcoin pumps.Downtrend = Risk-off mode; Altcoins suffer more than Bitcoin.Stability = Capital rotates into Altcoins.
Real-World Example from Past Cycles
2021 Bull Run:BTC.D spiked as Bitcoin pushed from $20k to $64k.When BTC stabilized at $50k-$60k, Ethereum and Altcoins rallied, leading to massive gains in May 2021 Altseason.Current Scenario:BTC dominance is currently increasing as Bitcoin tests $90k+.This indicates Altseason is still loading—be patient for BTC.D to reverse.
Actionable Steps
Track BTC DominanceUse platforms like TradingView to monitor BTC.D movements.Follow Bitcoin’s Price TrendWatch for BTC consolidation or a dominance drop—signals for capital rotation into Altcoins.Diversify SmartlyPosition in strong Altcoins (e.g., $ETH, $SOL) to capitalize during Altseason.Set Clear Exit TargetsExit Altcoin positions gradually as Bitcoin dominance starts increasing again.
🔑 Master the BTC Dominance Cycle to Stay Ahead in the Market!