BTC domination: how to use it? And when to buy Altcoins?
Today we will talk about Bitcoin Dominance. What is bitcoin dominance? Why is needed? And why exactly Bitcoin? Bitcoin is the first and the largest cryptocurrency by market capitalization. Altcoin is any cryptocurrency other than Bitcoin.
Dominance (BTC.D) displays the relationship between the direction of movement of different cryptocurrencies. To find this index you just need open TradingView and type BTC.D
There are quite a lot of indexes known to you in the world, the most famous of them are: Dow Jones Industrial Average S&P 500 RTS
Bitcoin dominance is the ratio of its market capitalization to all other cryptocurrencies. However, we cannot trade this index.
Pure math: if the capital invested in bitcoin decreases, then part of the funds goes into altcoins.
BTC.D gives an understanding of the general direction of the market at the moment and helps to determine when alt pairs are correlated with the first cryptocurrency.
However, the dominance of Bitcoin is declining as new cryptocurrencies emerge. Why? Because the capitalization of the alts is increasing much faster than the capitalization of bitcoin. Bitcoin dominance often depends on the altcoin season Altseason is a period during which altcoins gain a significant market share relative to Bitcoin, thus reducing the dominance of Bitcoin.
Note, however, that Bitcoin dominance does not always depend on the phase of the market. What does it mean? This means that if bitcoin falls in price, and with it the alts, then the dominance of bitcoin will remain approximately at the same level.
I prepared this cheat list by which you can determine the further movement of alts, depending on the Dominance of Bitcoin
You can always use it! Bitcoin dominance also can be used even on lower timeframes but it’s not a magic pill and you should understand some alts follow more btc some less. Thats why you can see situations when bitcoin going down and some alts with low cap can pump 100% in a few days.
Bitcoin dominance is just a tool that can give us more information about the state of the current market, and its possible future. On the Bitcoin Dominance chart, technical analysis works well, its help you to try predict the movement of the Bitcoin price relative to other alts.
Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch!
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💎Join Telegram - https://t.me/crypto4light
BTC domination: how to use it? And when to buy Altcoins?
Today we will talk about Bitcoin Dominance. What is bitcoin dominance? Why is needed? And why exactly Bitcoin? Bitcoin is the first and the largest cryptocurrency by market capitalization. Altcoin is any cryptocurrency other than Bitcoin.
Dominance (BTC.D) displays the relationship between the direction of movement of different cryptocurrencies. To find this index you just need open TradingView and type BTC.D
There are quite a lot of indexes known to you in the world, the most famous of them are: Dow Jones Industrial Average S&P 500 RTS
Bitcoin dominance is the ratio of its market capitalization to all other cryptocurrencies. However, we cannot trade this index.
Pure math: if the capital invested in bitcoin decreases, then part of the funds goes into altcoins.
BTC.D gives an understanding of the general direction of the market at the moment and helps to determine when alt pairs are correlated with the first cryptocurrency.
However, the dominance of Bitcoin is declining as new cryptocurrencies emerge. Why? Because the capitalization of the alts is increasing much faster than the capitalization of bitcoin. Bitcoin dominance often depends on the altcoin season Altseason is a period during which altcoins gain a significant market share relative to Bitcoin, thus reducing the dominance of Bitcoin.
Note, however, that Bitcoin dominance does not always depend on the phase of the market. What does it mean? This means that if bitcoin falls in price, and with it the alts, then the dominance of bitcoin will remain approximately at the same level.
I prepared this cheat list by which you can determine the further movement of alts, depending on the Dominance of Bitcoin
You can always use it! Bitcoin dominance also can be used even on lower timeframes but it’s not a magic pill and you should understand some alts follow more btc some less. Thats why you can see situations when bitcoin going down and some alts with low cap can pump 100% in a few days.
Bitcoin dominance is just a tool that can give us more information about the state of the current market, and its possible future. On the Bitcoin Dominance chart, technical analysis works well, its help you to try predict the movement of the Bitcoin price relative to other alts.
Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch!
🔥Get my Indicators Set Today - https://bit.ly/indicators4lights
✅Subscribe Youtube channel - https://bit.ly/3J1ZtJ2
💎Join Telegram - https://t.me/crypto4light
🐦Twitter - https://twitter.com/vladi4light
Crypto4lightArkham. How to track Market Makers?
Arkham Intelligence is a next-generation on-chain data research service. The platform aims to be a leading analytical tool, making blockchain transactions accessible even to beginners without blockchain browser skills. This data helps create valuable insights in the crypto space. Arkham Intelligence combines features from platforms like Bubblemaps, Nansen, and DeBank, offering statistical and historical data, transaction visualization, and deep on-chain analytics of individual wallets. Curren...
Crypto4lightWhat is token burning in crypto?
Understanding Token Burning in Cryptocurrency: A Comprehensive Guide What is Token Burning? Token burning is a crucial strategy in the volatile realm of cryptocurrencies, where assets lack real-world backing. Developers employ innovative approaches to maintain long-term price stability and incentivize investors. One such method is burning tokens, which involves removing coins from circulation. This action reduces the total supply, increasing scarcity, and potentially boosting the value of eac...
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