Simple Guide to Determining Altcoin Season: Understanding the BTC.D Indicator is Enough

For investors unfamiliar with technical analysis, a simple indicator can be used to judge whether the altcoin season has arrived — BTC.D, which represents Bitcoin's market capitalization as a percentage of the total cryptocurrency market capitalization. The formula is:

BTC.D = (Bitcoin Market Cap ÷ Total Cryptocurrency Market Cap) × 100

Simple interpretation reference:

• Indicator rising → Altcoin season has not yet started

• Exceeds 50% → Altcoin season is approaching

• Turning down from a high point → Altcoin season is in progress

• Gradually approaching 40% → Altcoin season may be coming to an end

Combined with further judgment of Bitcoin prices:

• BTC rising + BTC.D rising → Altcoins are performing weakly

• BTC rising + BTC.D falling → Altcoins are starting to strengthen

• BTC falling + BTC.D rising → Funds are shifting from altcoins to Bitcoin for safety

• BTC falling + BTC.D falling → Market panic selling, funds shifting to stablecoins

It should be noted that this indicator only reflects market sentiment and capital flow and should not be the sole basis for investment decisions; specific cryptocurrencies should be further validated with additional indicators.