If you are trading in the crypto markets and you are not watching the Bitcoin Dominance chart, which is ticker BTC.D on TradingView, then you are doing it all wrong. In this edition of the Daily Trade, we are looking at bitcoin dominance and why all crypto traders need this chart!
Bitcoin Is King
Let’s face it, Bitcoin Maxi or not, we all have to admit that Bitcoin is the king of all cryptocurrencies. It was the first, and has the highest marketcap of any other crypto in the market. And for this reason is why we watch the dominance figures.
When Bitcoin dominance is high, then that means that majority of the money is flowing into BTC. When it is dropping, that means that money is flowing down into the altcoins. It’s just another cycle to watch in this space. This is where we get those beloved ‘altcoin seasons’ that the degens all love.
We can get another view of just how dominant BTC is against the rest of the market on the heatmap from the Coin Logic markets page
Helps You Know When To Be In The Right Coins
As I discussed, watching the Bitcoin dominance can help you know when to be in Bitcoin or when you would be doing better in the altcoin space. If you trade against BTC, then this needs to be a major part of your analysis. This will help you make those clear cut decisions on your trades.
So before you make your next trade, you might want to check the Bitcoin dominance charts to see if it will be more profitable for you to be in Bitcoin, or whether there is an altcoin season on the horizon!
Either way, I hope you use the tools I have built on Coin Logic to help you make the best decisions for your trades and your business!
This post is also posted on InLeo.io via the Hive Blockchain!