I've been hearing about Bitcoin Dominance lately when Altcoin season started. I don't have any idea what it is, so I've decided to check it out. I'll make it simple and short so that anyone can understand.
Bitcoin Dominance
Bitcoin dominance refers to how much of the overall cryptocurrency market value is made up of bitcoin. The best method for identifying the pattern of Altcoins is Bitcoin Dominance. Since Bitcoin is the world's largest cryptocurrency by market capitalization, its price activity and supremacy have a huge impact on the altcoin market.
Just Bitcoin and a few altcoins were available in the early stages of the crypto industry, with Bitcoin being the only one that traded on exchanges. As a result, Bitcoin had virtually complete supremacy at the time. With the introduction of the ERC-20 standard and the ICO craze, a large amount of money began to flow into altcoins (alt-coins).
When bitcoin dominance rises, or when Bitcoin's cryptocurrency market share rises, altcoins begin to lose value, and when bitcoin dominance falls, or when Bitcoin's market share declines, altcoins begin to gain value.
When bitcoin dominance is greater than 70%, the altcoin market is said to be bearish, and when it is less than 60%, the market is said to be bullish. The Bitcoin Dominance was as poor as 30% during the 2017 Altcoin rally, resulting in an unprecedented rally in Altcoins.