Bitcoin Dominance (BTC.D in charts) is at interesting point. What we've seen from previous bear markets is, after the general capitulation, altcoins keep dropping against BTC, meaning the increase in BTC.D But this time there are large stable coin allocations in the game. Still, even if this indicator is not a price prediction tool, it helps to see the trend (reversal too). Here's a quick scenario cap of BTC.D actions by beincrypto.com: Case 1: BTC dominance is growing BTC Price Trading action (possible) Up Favor BTC Down Hold on to Fiat (Bearish waves) Sideways Hold on to Fiat/BTC (Choppy markets) Case 2: BTC dominance is declining BTC Price Trading action (possible) Up Favor Altcoins Down Hold on to Fiat (Massive bearish waves) Sideways Favor Altcoins (altcoin season building) Case 3: BTC dominance is sideways BTC Price Trading action (possible) Up Favor BTC (outside money coming to BTC) Down Hold on to Fiat (Bearish waves) Sideways Hold on to Fiat/Altcoins source: https://beincrypto.com/learn/bitcoin-dominance-chart/#h-bitcoin-dominance-is-a-handy-trend-analysis-tool
7 comments
That seems a low level of BTC dominance!?
It's been fluctuating around 40 for a while now. Personally content with this, but I expect it to rise in next months
Could it be that btc become this strong because it’s was the first?
Of course that's the main reason. But I think it'll change over time
Hmm Alright But it’s gonna be hard because people see btc as the king of all
Protocols eventually will be required to have utility. BTC store of value utility will be weakened over time when others provide much more for lower entry
Hmm Well I get your point Just like eth