In this THREAD I will explain:
1. What is Bitcoin dominance?
2. How does affect BTC dominance vs altcoins?
3. When we should accumulate altcoins?
What is BTC Dominance?
BTC dominance is the percentage of the entire cryptocurrency market capitalization held by $BTC.
It's calculated by dividing the market capitalisation of BTC VS the total market capitalisation of all cryptocurrencies.
Role Bitcoin dominance plays in the crypto market:
When BTC dominance rises, this indicates that people are either buying BTC selling altcoins, or both.
BTC Dominance is used as input for the crypto fear and greed index, a market sentiment indicator.
How does affect Bitcoin ominance vs altcoins:
Path to altseason;
Don't focus on a EXACT DATE, understand the money flow.
Duration of this phases are parabolic, first phase will take longer and last goes fastest.
Phases can overlap between them and can temporarily reverse.
Bitcoin dominance vs ALTCOINS dominance:
1. Dominance has made a TOP on his current range, and should go lower. This would be bullish for alts.
2. Alts dominance: Alts should keep pumping until resistance (403B as TOP)
If it losses 307B, alts will bleed.
Perfomance vs altcoins:
The altcoins you accumulate should outperform Bitcoin .
If your altcoin is not outperforming BTC, there's no point in holding it.
COMPARE the Satoshi value vs USD value of your altcoin. If it's outperfoming BTC is a good signal.
When we should accumulate altcoins?
- BTC dominance STABLE and BTC price UP
- BTC Dominance DOWN and BTC price UP
- BTC Dominance DOWN and BTC price STABLE
Always CHECK BTC Dominance and BTC price, BEFORE accumulating altcoins.
Altcoin research CHECKLIST:
This is an example of a CHECKLIST you should follow before investing on a project.
This information you could find it on the website of the project, whitepaper, roadmap, CoinGecko, Coinmarketcap...
All this information will appear online.
I hope this THREAD has helped you to understand the BTC Dominance vs alts dominance.
This has been an educational thread about BTC and his dominance.
