Usage

Bitcoin Dominance Trend Usage

This indicator is best used as a market context tool rather than a direct buy/sell signal.

Here’s how traders typically apply it:

1. Portfolio Allocation

   • If BTC.D is trending up, Bitcoin is absorbing market liquidity → favor BTC exposure.

   • If BTC.D is trending down, altcoins gain strength → increase alt exposure.

2. Altseason Timing

   • Sustained drops below 40% dominance often signal altcoin seasons.

   • Moves above 65% dominance suggest Bitcoin dominance cycles, where alts underperform.

3. Trend Confirmation

   • Use the moving average cross as a momentum confirmation.

   • Example: BTC.D above MA + rising → altcoins are likely to underperform.

4. Risk Management

   • Rising BTC.D with falling TOTAL2 or TOTAL3 → increased downside risk for alts.

   • Falling BTC.D with rising TOTAL2 or TOTAL3 → healthy altcoin market rotation.