In most cases, a steep and consistent downtrend in dominance happens in crypto bull markets, because intense bull markets tend to propel alt capitalizations higher than Bitcoin. Likewise, a pullback of this trend is typically a sign of a bear market.
It is almost that easy. Of course, Bitcoin Dominance can have different implications on different time frames, and it is ultimately only one tool in a trader’s toolkit.
In short, though, it is important to learn how to read the Bitcoin dominance chart. Luckily it is only a click away at CoinMarketCap.com or TradingView.
TIP: Below is an illustration of Bitcoin Dominance and its correlation with market cycles.
Disclaimer: Includes thrid-party opinions. No financial advice. May include sponsored content. See T&Cs.
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