Why is BTC.D important? What is BTC.D? The importance of BTC.D and trend analysis.

BTC.D represents Bitcoin Dominance, which plays a crucial role in predicting our position in the market cycle. This indicator measures Bitcoin's share of the entire crypto market; for example, when BTC.D is 63%, it means that Bitcoin controls 63% of the cryptocurrency market, with 63% of liquidity dedicated to Bitcoin. In this case, it is naturally Bitcoin's season, and we can expect altcoins to weaken relative to Bitcoin.

When BTC.D starts to decline, it is a good sign for altcoins, as it means liquidity is flowing more towards other crypto assets, such as Ethereum, blue chips, and altcoins.