✧ What is BTC.D (Bitcoin Dominance)?
BTC.D is the percentage ratio of Bitcoin's market capitalization compared to the total market capitalization of the entire crypto industry. When BTC.D increases, it means that money is flowing into BTC more than altcoins, and vice versa.
✧ Why should we watch BTC.D to trade in rhythm?
- Strong increase in BTC.D: Usually occurs when the market is downtrend or sideways, investors sell altcoins to hold BTC or USD.
- Decrease in BTC.D: When the market is uptrend, altcoins often "pump" stronger than BTC (for example: altcoin season).
→ Monitoring BTC.D helps traders choose the right time to buy altcoins or take profits effectively.
✧ When should you hold BTC?
- When BTC.D increases sharply (the market is uncertain, FUD spreads).
- Before major events like Halving, ETF approval.
✧ When to hold altcoins?
- When BTC.D decreases or stabilizes, indicating that money is flowing into altcoins.
- When BTC is stagnant and there are accumulation signals from strong altcoins (ETH, SOL, BNB…).
✧ When should you hold USD?
- When BTC.D suddenly increases + the market drops deeply (sign of capitulation).
- When the trend is unclear, waiting for bottom-buying opportunities.
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✧ Important notes
- BTC.D is just a tool, it needs to be combined with volume analysis and news.
- Don't FOMO into altcoins when BTC.D is rising quickly – it is often a "trap".
Hope this article helps you trade more effectively! 🚀