✅ 1. What is Bitcoin Dominance?

Bitcoin Dominance (BTC.D) is the percentage ratio of Bitcoin's market cap compared to the total market cap of the entire crypto market.

🔸 Formula:

BTC.D = BTC Market Cap / Total crypto market cap

➡️ However, you do not need to calculate it manually, as the BTC.D index is already available on platforms like TradingView, CoinMarketCap, etc.

⚠️ 2. Note when tracking BTC.D

  • When BTC market capitalization increases sharply, it indicates that money is focusing on Bitcoin, often causing altcoins to be 'bled'.

  • When BTC market capitalization increases sharply, it indicates that money is focusing on Bitcoin, often causing altcoins to be 'bled'.

  • Conversely, when BTC.D decreases, money usually flows into altcoins → thus prioritizing altcoins will have a higher win rate.



🧠 3. Tips and experience using BTC.D for trading

  • Increasing BTC Dominance + rising BTC price = whales push BTC up.

  • Increasing BTC Dominance + falling BTC price = whales take profits in USD.

  • Increasing Dominance + sideways price = whales take profits in USD.

  • Decreasing Dominance + rising BTC price = whales push altcoins up.

  • Decreasing Dominance + falling BTC price = whales take profits in USD.

  • Decreasing Dominance + sideways BTC price = upward trend of altcoins.

  • Sideways Dominance + rising BTC price = whales push BTC up.

  • Sideways Dominance + falling BTC price = whales take profits in USD.

  • Sideways Dominance + sideways BTC = whales push altcoins up.

📝 Summary:

The BTC Dominance index is a useful tool for predicting cash flow in the crypto market. However, you should combine multiple analysis methods to make more reasonable entry/exit decisions.

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