BTC Dominance (BTC.D) is the percentage of Bitcoin's market value relative to the total capitalization of the entire crypto market. In short, when BTC.D rises, the king retains the throne, when it falls, altcoins make a comeback.
How it works in practice:
BTC dominance rising = the market is focusing on Bitcoin. Here altcoins often fall, and traders move money into BTC.
BTC dominance down = it's altcoin time. Capital is flowing from Bitcoin into secondary coins.
Why this is important:
BTC.D shows whether the market is in “safety” mode ( all in BTC ) or in “growth” mode ( money is flowing into altcoins ). This is one of the most important signals for understanding market sentiment.
In practice:
When BTC.D starts to fall - it's time to review the portfolio in favor of altcoins. When it rises - consider taking profits on alts.
But remember: BTC.D is just one tool. Don't put all your chips on it. Combine it with other signals, keep an eye on the news, analyze the volumes. The money machine of crypto is more complex than a single index.
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How to read BTC.D correctly: a simple guide for traders
BTC Dominance (BTC.D) is the percentage of Bitcoin's market value relative to the total capitalization of the entire crypto market. In short, when BTC.D rises, the king retains the throne, when it falls, altcoins make a comeback.
How it works in practice:
BTC dominance rising = the market is focusing on Bitcoin. Here altcoins often fall, and traders move money into BTC.
BTC dominance down = it's altcoin time. Capital is flowing from Bitcoin into secondary coins.
Why this is important:
BTC.D shows whether the market is in “safety” mode ( all in BTC ) or in “growth” mode ( money is flowing into altcoins ). This is one of the most important signals for understanding market sentiment.
In practice:
When BTC.D starts to fall - it's time to review the portfolio in favor of altcoins. When it rises - consider taking profits on alts.
But remember: BTC.D is just one tool. Don't put all your chips on it. Combine it with other signals, keep an eye on the news, analyze the volumes. The money machine of crypto is more complex than a single index.