The idea is to read the market using several indicators that confirm one another, rather than relying on a single indicator.
1. Bitcoin dominance (BTC.D)
Determine its trend on the weekly or daily timeframe, then watch its support and resistance levels just as you would with any price. A clear break below support in dominance while Bitcoin’s price remains stable is an early sign of a shift in liquidity.
2. ETH/BTC ratio
Ethereum is the leader among altcoins. If the ratio is rising, it means liquidity is starting to flow out of Bitcoin and into the rest of the market. If it’s falling, altcoin season has probably not started yet, even if dominance has declined.
3. Stablecoin dominance (USDT.D)
A rise in its value as the market falls indicates fear and a flight to cash.
A decline in its value as the market rises means new liquidity is flowing into cryptocurrencies.
They explain why Bitcoin dominance might fall without altcoins rising.
4. Market indicators excluding Bitcoin
Use TOTAL3 (the market cap excluding Bitcoin and Ethereum) or OTHERS.D. A sustained rise in either is the true confirmation that smaller coins are gaining ground.
5. Altcoin Season Index and trading volume
If a large proportion of the top 50 coins outperform Bitcoin over 90 days, altcoin season is truly underway. Rising volume alongside price increases lends credibility to the move.
How do you use them together?
💢Possible altcoin season scenario: BTC.D falls, ETH/BTC rises, USDT.D falls, and TOTAL3 rises.
💢Cautious scenario: BTC.D rises, USDT.D rises, and the market falls.
💢Unclear scenario: Signals are mixed, so it’s best to reduce position sizes or wait.
👀Practical tips:
Wait for the candle to close and for a breakout to be confirmed before acting on any signal, as false breakouts are common.
Don’t enter a small-cap altcoin position just because dominance has fallen. Choose coins with good liquidity and set a stop-loss in advance.
This is a general explanation, not financial advice. Would you like a practical example showing how to read a specific market condition step by step?
$BTCDOM #TOTAL2 $ETH #BinanceAcademy
