BTC dominance vs altcoins: how not to lose money

Bitcoin dominance (BDI) is simply: what % of the cryptocurrency market is occupied by BTC. For 2024, it is 56-58%.

What does this mean for the trader?

When BDI rises → money goes into BTC, altcoins fall. When BDI falls → altseason begins, ETH and XRP soar.

The two main pairs to watch:

  1. ETH/BTC — shows when Ethereum will start to rise faster than Bitcoin. The rise of this pair = capital flow from BTC to ETH.

  2. XRP/BTC — signal for Ripple and generally for liquid altcoins. Decline = interest dies.

Three scenarios that work:

  • BTC is rising, BDI is rising, ETH/BTC is falling → all money into Bitcoin, altcoins are resting
  • BDI starts to fall, ETH/BTC and XRP/BTC break out of the channel upwards → let's go altseason, there will be movement
  • BDI is falling, pairs are falling → general correction, money is leaving the statistics

How to analyze:

TradingView + support/resistance levels + RSI for entries. CoinMarketCap will show the current dominance in real-time.

Simply put: look at BDI down → prepare money for alts. BDI up → sit in BTC or wait for a correction.

BTC1.12%
ETH5.87%
XRP-0.28%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)