Three indicators to judge the timing of the altcoin bull market
1. BTC dominance
The current market share of Bitcoin is 53%, a multi-year high. The next key level to watch is 58-60%, a range that has served as support and resistance areas in the past. When BTC.D (Bitcoin market share) reaches the peak of the cycle and begins to fall back, it means that funds may turn to other assets, first mainstream coins such as SOL and ETH, and then flow to altcoins.
2. ETH/BTC ratio
Since December 2021, the ETH/BTC ratio has been underperforming. When ETH/BTC hits the bottom and starts to show a bullish trend, it marks the beginning of the rising phase of the altcoin market cycle. This means that Ethereum begins to regain strength relative to Bitcoin, and funds may flow from Bitcoin to Ethereum, and then to other altcoins.
3. Stablecoin inflows
A key indicator in on-chain data is the inflow of stablecoins. The influx of stablecoins usually indicates that the altcoin market is about to gain momentum. Especially when USDT is issued on the chain, it means that investors are in a high mood to buy at the bottom, and market funds will flow into altcoins, pushing up their prices.
Through the comprehensive analysis of the above three indicators, it is possible to more accurately judge when the altcoin bull market will come, so as to make more informed investment decisions
