OVERVIEW
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Navigating the vast universe of cryptocurrency can sometimes feel like deciphering an ancient map.

Understanding the movements and psychology of the market is crucial—not just your own reactions, but how other investors respond to shifts and trends.

That’s where a key Indicator like Bitcoin Dominance (BTCD) steps in.

WHAT IS

Bitcoin Dominance — A Beginners Guide

Imagine all the money invested in cryptocurrencies as a giant pie. Bitcoin dominance shows you how big a slice, of that pie, belongs to Bitcoin alone.

For example, if Bitcoin's slice is 57% of the pie, that means it accounts for 57% of the total market capitalization of all cryptocurrencies.

The bigger Bitcoin's slice, the more control Bitcoin has in the crypto conscious.

WHY

Keep Tabs on Bitcoin Dominance

If Bitcoins slice of the pie is bigger than the rest, it means people have a smaller appetite for alternative cryptos like Ethereum, Solana and others.

Here's a simpler analogy:

Think of Bitcoin Dominance as the market’s mood ring:

• When dominance rises: Often, this means that investors are flocking to Bitcoin as a safe haven, possibly selling off altcoins. Indicating the market is cautious or fearful.
  

• When dominance falls: This likely means investors are feeling bullish, buying up Bitcoin and venturing into more volatile altcoins in search of higher returns. Indicating the market is greedy.

HOW

MACRO Factors Affect Bitcoin Dominance

Bitcoin dominance (BTCD) isn’t just another chart to stare at.

It often reflects the reaction and psychology of other investors & traders to both, broader economic policies and crypto ecosystem factors.

Some macro facts that affect BTCD include:

• Interest rate hikes and tighter monetary policies can scare off some investors from riskier assets, making Bitcoin, the "digital gold," more appealing.

• International tensions shakes all markets causing investors to move away from risk assets as they believe the world could enter time of conflict. This recently occurred when Israel attacked Iran on the 19th of April.

Look at how BTCD drops suddenly after the release of the news 👇️ 

Some crypto-specific factors that might impact Bitcoin dominance include:

• Altcoin inventions: if new altcoins are launching and seeing rapid adoption rates, this could result in declining BTC dominance.
  

• Trader speculation: Bitcoin dominance could rise or fall in accordance with the appetite for altcoins. If dominance rises along with the price of Bitcoin, it tends to be bearish for altcoins, while falling dominance with an increasing BTC price tends to be bullish for altcoins.

USING

Bitcoin Dominance To Your Advantage

As we have shown you thus far It's a well-known fact that the crypto market orbits around Bitcoin, the mother of all cryptocurrencies.

A wise crypto investor should always keep there eye on Bitcoin Dominance.

To use Bitcoin dominance you must have Trading View installed on your mobile phone or computer.

After installing, follow these steps 👇️ 

Before investing one should observe the state of BTCD to know whether it is an appropriate time to invest.

Here is a cheat sheet for you to use 💎 👇️ 

As an example, if the BTCD is increasing and the Bitcoin price is decreasing, it would be unwise of me to rush in and buy altcoins.

The reason being is the market is fearful and is unsure. Where as, if the BTCD was decreasing and the Bitcoin price was stable, then it would be okay to invest in altcoins.

That is…

Assuming you found the perfect Altcoin in THE VAULT 😉 

or did your own research prior 🤔 

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