BTC Dominance: Master this indicator, and you've already won half of your trades.

What is BTC.D?

In simple terms, BTC Dominance refers to the “influence” of Bitcoin in the entire cryptocurrency market – the percentage of its market capitalization compared to the total market capitalization of the cryptocurrency space.

• BTC.D↑ = Money is flooding into BTC, retail investors are either bottom-fishing or avoiding risks.
• BTC.D↓ = Funds are flowing to altcoins, the “crypto spring” has arrived

Why keep an eye on this indicator?

Market Sentiment Barometer

This is not some profound theory — historical data tells us that every turning point of BTC.D corresponds to the main rhythm of the market:

When BTC.D surges (usually during bear markets or consolidation periods)

• Investors panic sell altcoins
• The funds flow to the safest BTC or USD
• FUD sentiment spreads, and the market falls into uncertainty

When BTC.D falls (usually in the middle of a bull market)

• The altcoin season officially begins
• Top coins like ETH, SOL, and BNB have started to soar wildly.
• Retail investors' FOMO sentiment is at its peak.

Practical Trading Guide

BTC Position Signal

• BTC.D sharply rises → Market danger signal, hold on to BTC or switch to stablecoins
• The night before major events such as halving and ETF approval → Accumulation period, holding BTC

Signal to Shift to Altcoins

• BTC.D starts to flatten or pull back at a high point → Prelude to altcoins taking off
• BTC is stuck in a sideways trend, but ETH, SOL, and others show obvious accumulation signs → Time to get in

Signal for liquidating cash

• BTC.D suddenly surged + market crashed → retail investors surrendered, holding coins waiting for the bottom
• The market is unclear, and certain opportunities cannot be found → Wait, don't chase.

Common Pitfalls

Biggest Misconception: FOMO into altcoins when BTC.D drops rapidly.

This is usually a “altcoin rebound trap”; on the surface, BTC.D is falling, and altcoins are rising significantly, but in reality, this may just be a dead cat bounce. Many people get trapped at this time.

Core Recommendation: BTC.D must be analyzed in conjunction with trading volume, market news, and on-chain data. Relying solely on this one indicator can be misleading.

Summary: Treat BTC.D as your “market thermometer”. It can't tell you what to buy, but it can tell you when to be aggressive and when to be conservative. Learning to read this indicator is like mastering the psychological fluctuations of the crypto world.