Topic: [GUIDE] The BTC Dominance Chart & How To Read It - page 2. (Read 362 times)
Would of expected more views and feedback from this. Pretty important
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. For me this BTC dominance concept to trade BTC/altcoins is new one, it looks good, I will surely give it a try once I understand it. Thanks for elaborating this concept with examples but I still need to study it more. I will be looking for some more charts from you.
Thank you, I appreciate it. You will be seeing more
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. For me this BTC dominance concept to trade BTC/altcoins is new one, it looks good, I will surely give it a try once I understand it. Thanks for elaborating this concept with examples but I still need to study it more. I will be looking for some more charts from you.
Hey everyone. Hope you all appreciate this one, certainly good if you hold a few altcoins at the same time as BTC.
Bitcoin dominance is a huge thing and often overlooked as a money flow indicator based on the %.
Higher the Bitcoin Dominance the more likely your altcoin satoshi value is going through the floor.
Likewise, if the Bitcoin Dominance is low your altcoins will be growing in value and it is often known as 'Alt-Season'
What do you need?
Go onto Trading View and check out a chart 'BTC.D' Which is basically the Market Cap BTC Dominance.
It looks like this.
Now I am going to teach you in a very basic format what you need to look for based off trend analysis on what to do with your portfolio at different points.
What you may want to use is a simple crossover method on the Daily or (any other tool you may know to discover the direction of the trend) Remember we are using the daily timeframe.
I use the EMA 8 Crossing the EMA 20 on the daily along with other trend indicators such as the RSI, MACD and Stoch RSI. But you only need to be on the correction trend direction.
RULES:
UPTREND = BTC DOMINANCE INCREASING = SELL ALT-COINS INTO USDT/Other stable coin or into Bitcoin. - Why? - You stop your Satoshi Values Dropping (Example Coming)
DOWNTREND = BTC DOMINANCE DECREASING = BUY ALT-COINS - Why? Alt-coins will increase in % over Bitcoin meaning you will increase your Satoshi Values.
April Altcoins (ETH) Vs April Bitcoin
See the difference?
Now let us look at that dominance chart again.
As the dominance rose so did the Bitcoin Price, but what dropped was plenty of alt-coins. Again check out the example below.
As that dominance kept increasing the altcoin value in BTC kept dropping.
I hope you enjoyed this. Please send some love, it would be hugely appreciated
Bitcoin dominance is a huge thing and often overlooked as a money flow indicator based on the %.
Higher the Bitcoin Dominance the more likely your altcoin satoshi value is going through the floor.
Likewise, if the Bitcoin Dominance is low your altcoins will be growing in value and it is often known as 'Alt-Season'
What do you need?
Go onto Trading View and check out a chart 'BTC.D' Which is basically the Market Cap BTC Dominance.
It looks like this.
Now I am going to teach you in a very basic format what you need to look for based off trend analysis on what to do with your portfolio at different points.
What you may want to use is a simple crossover method on the Daily or (any other tool you may know to discover the direction of the trend) Remember we are using the daily timeframe.
I use the EMA 8 Crossing the EMA 20 on the daily along with other trend indicators such as the RSI, MACD and Stoch RSI. But you only need to be on the correction trend direction.
RULES:
UPTREND = BTC DOMINANCE INCREASING = SELL ALT-COINS INTO USDT/Other stable coin or into Bitcoin. - Why? - You stop your Satoshi Values Dropping (Example Coming)
DOWNTREND = BTC DOMINANCE DECREASING = BUY ALT-COINS - Why? Alt-coins will increase in % over Bitcoin meaning you will increase your Satoshi Values.
April Altcoins (ETH) Vs April Bitcoin
See the difference?
Now let us look at that dominance chart again.
As the dominance rose so did the Bitcoin Price, but what dropped was plenty of alt-coins. Again check out the example below.
As that dominance kept increasing the altcoin value in BTC kept dropping.
I hope you enjoyed this. Please send some love, it would be hugely appreciated
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