How to Easily Understand the Cycle of BTC Dominance in the Market?
Once BTC and BTCDOM both increases, the effect of this on alts would be most of the time decreases as the interest of traders are shifted to BTC and not on the altcoins. That's the main point. Since there are more traders who are willing to trade BTC especially when the overall market sentiment is bullish, altcoins will most likely be left behind. By the time, BTC becomes stable and BTCDOM is still increasing, that would make altcoins move sideways as there would be lesser interest in the crypto market during that time. This mostly happens during weekends. As for the time when overall BTCDOM is increasing and BTC is having a decline, altcoins would most of the time breakdown or have a total crash as more orders are flowing to BTC even if it's declining and altcoins will most likely be experiencing high volume of selloffs during that time. As for when BTC is stable and BTCDOM is decreasing, the tendency for traders to trade altcoins would increase as only a few would want to trade in a ranging market and would want a market with more breakouts hence the choice for altcoins. As for both decreases in BTC and BTCDOM, altcoins would become stable as traders would most likely observe the market before making a move. Lastly, once BTCDOM gets rejected at its resistance and once it experiences its very own decline meanwhile BTC is doing a rally, that's when altcoins will increase not only by the speed of markup but by the quantity of the value that would increase which most of the time will increase by more than thrice their original value, hence, this mostly happens once the altcoin season starts.
Stay wise, trade cautiously.