Not really. If the market is super confident they will also diversify and buy in to a lot of new projects and try out some new alts which they would not have risked in the period of low confidence. With more confidence comes a willingness to take risks,,, and this results in using up btc to buy more alts = less btc dominance.
Yes, that's what I meant - sorry I wasn't being clear. If confidence is low then it is generally a bear market, if confidence is higher then BTC increases... but if confidence is very high, then people feel comfortable diversifying into alts, and alts rise. Alt rise happens when market confidence is very high. So BTC dominance is tied to market confidence - the lower the confidence the higher the BTC dominance.
It's just that high confidence seems some way away at the moment...