Topic: [GUIDE] The BTC Dominance Chart & How To Read It (Read 321 times)
When the price of bitcoin is going up The price of ALTCOIN tends to drop, majority of the times, this happens. I think this is because people likes to buy bitcoin and sell their ALTCOIN whenever see the price of bitcoin going up. And once they see that bitcoin has started going down they will start to sell their bitcoin and start buying altcoins and that will make the price of altcoins to go up while that of bitcoin (BTC) continues to fall . There are times that BTC can go up along with altcoins, but this can only be true for the top of the list altcoins like XRP, ETH, stellar, BCH and others. But the smaller ones will keep dying as these goes up cause they are getting dumped by traders.
CryptoMobster, Bitcoin's dominance is slightly dropping, do you know of a way to graph in what altcoins most of the value have transferred to according to the altcoin's own dominance?
I believe you have something here.
I believe you have something here.
I do. There is a one called Total2 on Trading view which is all ALTs except BTC. When that goes up and BTC Dominance goes down. Alts rally and vise versa
CryptoMobster, Bitcoin's dominance is slightly dropping, do you know of a way to graph in what altcoins most of the value have transferred to according to the altcoin's own dominance?
I believe you have something here.
I believe you have something here.
Thanks for making this guide this would be really helpful for all of us,
And it would really help a lot for a newbie that wants to enter trading ,
It is important to know how to read the chart and how to use it .
And it would really help a lot for a newbie that wants to enter trading ,
It is important to know how to read the chart and how to use it .
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Yes, the guide/information about The BTC dominance is really useful and really I am helped Because I have a little bit of confusion about The BTC dominance. Now I am calear about this. So thanks to providing this type of Guidepost. Hope you will keep it up.
I appreciate all the merits! Was not expecting that. Thank you all.
Just to highlight if you found the chart too hard, I've made this one with less noise.
Hope this helps.
Just to highlight if you found the chart too hard, I've made this one with less noise.
Hope this helps.
Do we really need to plot Bitcoin's dominance though? I mean it will be obvious that if the dominance is going up, altcoin prices are down because investors and speculators shifts their funds around to which they will get a good value for this money. So it doesn't make sense to complicate things in your end, just saying. We appreciate your tips though.
It is good for alerts. I set an alert to tell me what direction it could be going based on the methods above. If I know that gradually BTC dominance is going up, I'll keep an eye on my holdings to potentially sell to keep my BTC value. Likewise if it goes down, ill look to grow it with purchase to increase my BTC.
I am a forex trader and trade forex based on technical charts. I am trying to use the same concept in crypto but I am unsuccessful so far.
I was thinking the technicals of that of forex trading is same with crypto because they appear as the same both in the names too. But I don't really know if the outcomes interms of using them the same way is the same. I understand that bitcoin is highly volatile, that might make it look different .
Each market is different. For example moving averages don't work always in the same way. Same for when you consider the use of certain crypto methods within the stock market. You got to papertrade and find what works. For me I always find that the fundamentals are very important due to how small the crypto market is, behaves different.
Do we really need to plot Bitcoin's dominance though? I mean it will be obvious that if the dominance is going up, altcoin prices are down because investors and speculators shifts their funds around to which they will get a good value for this money. So it doesn't make sense to complicate things in your end, just saying. We appreciate your tips though.
Although, will the two always be in opposition forever? I believe that it would depend on where the fiat investment directly goes, and shitcoins have been getting more through stablecoins, and they will be getting more.
Very nice guide, I hope many newbies read this and can truly understand the point of Bitcoin dominance when they see it on CMC.
Btw, if Bitcoin dominance is increasing it means two things. First, it means Bitcoin price is increasing and second your alt will likely to bleed.
Btw, if Bitcoin dominance is increasing it means two things. First, it means Bitcoin price is increasing and second your alt will likely to bleed.
I disagree. Although the graphics can induce one to think so. There were periods when Bitcoin's dominance increased even as the price fell relative to the dollar. And it is always important to also have the dollar as a parameter.
Bitcoin is less volatile relative to the dollar than the overwhelming majority of altcoins. This everyone knows. It is an asset with greater liquidity, with the largest number of pairs with fiat, with the largest numbers of pairs with cryptos. But in this market, most seek volatility and in many cases the other cryptos offer greater risks, and in some small situations, they offer greater profits.
Would of expected more views and feedback from this. Pretty important
It's not your fault. Most people here think they are experts and don't need valuable input from others when it comes to trading, fundamentals or other important indicators that matter in trading.Dominance has been quite an important metric so far, which I wanted to trade on, but unfortunately didn't do. The moment Bitcoin's dominance tanked to almost 50% flat it really looked like Bitcoin was undervalued, and it actually was.
Round total market cap in billions also matters a lot, which in Bitcoin's case was almost $100 billion and this time I did trade that event by shorting Bitcoin, and it worked out well for me. Some times you have to take that risk.
A nice guide indeed for those who wanted to test the percentage of the dominance of bitcoin. This one is just to make sure what is the current btc dominance but for me, I'm just looking at CMC in order to see the dominance.
Just speaking out of my experience here you see the thing is with BTC's dominance chart you can't really have a foresight on what is really happening, what it means is prices are either going up and down even after its chart it will say that is happening. So really Bitcoin's price dominance chart cannot really be useful in a day to day trade in which you want to jump over on something that hasn't move yet, it's like one of those indicators that couldn't tell anything at all.
Very nice guide, I hope many newbies read this and can truly understand the point of Bitcoin dominance when they see it on CMC.
Btw, if Bitcoin dominance is increasing it means two things. First, it means Bitcoin price is increasing and second your alt will likely to bleed.
However, it's not necessary to dump your bag of alts when the dominance up even your alts is bleeding. Always see it on 2 way, satoshi wise and fiat wise. I have experienced when my alts is bleeding (satoshi wise) but when I in fiat wise I'm still in profit. This is what's called the "Bitcoin dilemma", where you might get loss in satoshi but you still get profit in fiat, vice versa.
Btw, if Bitcoin dominance is increasing it means two things. First, it means Bitcoin price is increasing and second your alt will likely to bleed.
However, it's not necessary to dump your bag of alts when the dominance up even your alts is bleeding. Always see it on 2 way, satoshi wise and fiat wise. I have experienced when my alts is bleeding (satoshi wise) but when I in fiat wise I'm still in profit. This is what's called the "Bitcoin dilemma", where you might get loss in satoshi but you still get profit in fiat, vice versa.
To be honest, I feel too difficult to understand the chart. I don't know why, but I think that lesson is for the intermediate person who knows the basics of trading and for new people or for people who are not too active to trade, it could confuse to learn by the chart.
But that is a good lesson for every people on here which want to learn more about how to read bitcoin chart.
Thank you for the lesson, I am trying to learn step by step of your lesson, and I hope that it will give something a new lesson for me.
But that is a good lesson for every people on here which want to learn more about how to read bitcoin chart.
Thank you for the lesson, I am trying to learn step by step of your lesson, and I hope that it will give something a new lesson for me.
Very useful guide op. The manner in which you detailed everything with illustrations was easy great and well put. I knew about this information, but I learnt some other stuff which I was not aware of.
Many people tend to downplay the dominance factor which is something that needs to be analyzed regularly.
Many people tend to downplay the dominance factor which is something that needs to be analyzed regularly.
Do we really need to plot Bitcoin's dominance though? I mean it will be obvious that if the dominance is going up, altcoin prices are down because investors and speculators shifts their funds around to which they will get a good value for this money. So it doesn't make sense to complicate things in your end, just saying. We appreciate your tips though.
OP, thanks. A basic guide that we can recommend for newbies who are considering day trading shitcoins. Although I usually recommend the Bitcoin HODL, your guide can also help them lose less by knowing when or when not to buy shitcoins.
I am a forex trader and trade forex based on technical charts. I am trying to use the same concept in crypto but I am unsuccessful so far.
I was thinking the technicals of that of forex trading is same with crypto because they appear as the same both in the names too. But I don't really know if the outcomes interms of using them the same way is the same. I understand that bitcoin is highly volatile, that might make it look different .
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