BTC dominance: how to understand the game on altcoins

Bitcoin dominates the crypto market, but not always equally. BTC dominance is simply the percentage of its capitalization from the entire crypto market. If Bit occupies 60%, then altcoins share the remaining 40%.

Why is this important? When dominance is high, people hide their money in “safe” Bit. If it drops by 5%, altcoins will fall by 10-20%. When dominance falls, altseason begins, and altcoins skyrocket in price.

Why is it dangerous to catch alts right now?

Apparently, the logic is simple: if Bit has risen from 65k to 100k — that’s 1.5x. And if your alt goes from $0.5 to $5 — that’s 10x. Sounds attractive, but here’s the catch.

Currently, BTC is in a rise mode, and its dominance remains high. This means that any correction of the main coin will hit altcoins hard. After the rebound of BTC, altcoins may not recover as quickly — money will flow back into the king of crypto.

What to do?

Do not give up on altcoins, but catch the right entry points. You need to feel the moment when Bit is ready for a correction and enter altcoins precisely then. Study the charts, understand the resistances — this will save your portfolio.

The altseason will come, but there is no need to rush.