BTC.D or Bitcoin dominance is most important for those people who want altseason. In the crypto market, when BTC dominance is rising, it means Bitcoin’s performance is better than other cryptocurrencies. Most of the time, when BTC dominance stays bullish, altcoins bleed. If Bitcoin takes a short correction while BTC dominance is bullish, altcoins usually bleed even more. That’s why BTC dominance is most important for people who love to trade altcoins.
Usually, crypto traders always detect where the money is flowing, because where liquidity goes, traders will trade there. So when BTC dominance is pumping, you should move into Bitcoin, because altcoins can bleed or their performance will be low. BTC dominance is a performance index or indicator — it shows where traders will get the strongest movement.
Gravity Effect on BTC Dominance
Think about throwing a ball into the open sky. The ball goes up, but the higher it goes, the more it slows down. When it starts falling, the speed increases quickly.
Bitcoin dominance works the same way:
- When BTC dominance rises, it usually takes a long time — maybe one year or even 1.5 years.
- When BTC dominance falls, it happens much faster — sometimes within just 3–4 months.
What Happens When BTC.D Falls?
When Bitcoin dominance falls, Bitcoin usually slows down and more liquidity enters the altcoin market. This doesn’t mean that if BTC dominance is bearish, Bitcoin will go down. It simply means Bitcoin will move slower or its performance will be less, while altcoins will perform better.
Example Scenarios
- If BTC dominance pumps 3% and Bitcoin pumps 10% → the altcoin index will pump about 7%.
- If Bitcoin dumps 10% but BTC dominance also dumps 3% → altcoins will dump less, around 7%.
- If Bitcoin is pumping and BTC dominance is falling at the same time → altcoins will fly to the moon. This is the strongest signal for altseason.
Overbought & Oversold Signals
- When BTC dominance is overbought, traders know it cannot stay high forever (gravity effect). That’s the right time to start preparing for altcoins. But this doesn’t mean you should buy every altcoin — you need to choose specific coins that will perform better when BTC dominance turns bearish. (We will explain coin selection in another article.)
- When BTC dominance is oversold, it becomes risky. Big investors often manipulate here, pushing retailers to buy altcoins so they can dump their bags and move back into Bitcoin.
Misconception About BTC.D
Many traders think if Bitcoin dumps, altcoins will always dump harder.
Not always true.
Sometimes Bitcoin dumps but altcoins stay strong or don’t follow Bitcoin’s move. This happens because BTC dominance is also going down. When BTC and BTC dominance both fall together, altcoins can remain stable or even perform better.
BTC.D Impact on Altcoins (Quick Formula)
- BTC ↑ + BTC.D ↑ → Altcoins go up less than BTC
- BTC ↓ + BTC.D ↑ → Altcoins bleed more than BTC
- BTC ↑ + BTC.D ↓ → Altcoins pump harder than BTC (altseason, “to the moon”)
- BTC ↓ + BTC.D ↓ → Altcoins dump less than BTC (sometimes stay stable)
Conclusion
BTC dominance is not just a chart — it’s a performance index that shows where the liquidity is flowing.
- When BTC.D goes up → Bitcoin is stronger, altcoins are weak.
- When BTC.D goes down → Bitcoin slows, altcoins pump.
If you want to catch altseason, you must watch BTC dominance every time. It’s one of the clearest indicators to detect whether the big move will be in Bitcoin or in altcoins.
