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.