What does the dominance of Bitcoin mean and how use it in trading?

[cryptorios 455]

 

Hello friends, I am new in trading, and I often hear analysts warn against buying altcoins when the dominance of Bitcoin in the market is high, and there are those who recommend learning the dominance chart. Where to start and how to take advantage of dominanceto make profit from trading.

Thank you

[Kami505030 1617]

Yes you are right, increase in Bitcoin affect on other crypto currencies. So when price goes up for BTC then try to look properly on other crypto. This will make a great affect on the traders.

[rekter 8129]

19 hours ago, cryptorios said:

 

Hello friends, I am new in trading, and I often hear analysts warn against buying altcoins when the dominance of Bitcoin in the market is high, and there are those who recommend learning the dominance chart. Where to start and how to take advantage of dominanceto make profit from trading.

Thank you

I am not sure what analysis you have been listening to. When the btc dominance hits the lowest point it doen't mean that you should buy altcoins. It only means that price of the altcoins are usually high. IMHO right time to buy certain altcoins is when btc dominance has just peaked and starts to retrace back down.

[Whited35 15285]

21 hours ago, cryptorios said:

Hello friends, I am new in trading, and I often hear analysts warn against buying altcoins when the dominance of Bitcoin in the market is high, and there are those who recommend learning the dominance chart. Where to start and how to take advantage of dominanceto make profit from trading.

Coinmarketcap has introduced this Bitcoin dominance index to compare the total marketcap of Bitcoin with the marketcap of other cryptocurrencies in the markets. When the investors just for Bitcoin get increased massively, you might see the significant growth in the Bitcoin dominance in the cryptocurrency markets and if you are preferring to make short-term investment in altcoins, generally investors do not invest heavily in altcoins at the time when Bitcoin dominance is appeared to be very high. 

[cryptorios 455]

37 minutes ago, Whited35 said:

Coinmarketcap has introduced this Bitcoin dominance index to compare the total marketcap of Bitcoin with the marketcap of other cryptocurrencies in the markets. When the investors just for Bitcoin get increased massively, you might see the significant growth in the Bitcoin dominance in the cryptocurrency markets and if you are preferring to make short-term investment in altcoins, generally investors do not invest heavily in altcoins at the time when Bitcoin dominance is appeared to be very high. 

 Of course, this is what I also understood, when Bitcoin dominance increasingly in the market, we should not buy the altcoins, because their price will drop.

Thankyou

[Kanji 965]

@cryptorios More and more people are using it to store and this is becoming a sort of a rush to find the idea that is going to be helpful in using bitcoin but other companies are actually using bitcoin technology to work with them so to them its really be good in what is going on there is a lot of effort to it , there is good ideas that work out perfectly with it , but we still have to get the rule , people keep on buying bitcoin over and over

[abohasnn9 2401]

My friend, the cryptocurrency Bitcoin is the father of all currencies, it is the first currency that was created in the history of currency technology, it is a currency through which all other currencies are traded, it is like the US dollar that everyone deals with, but inside trading platforms .... and it is traded like any other currency we buy  Then when it rises we sell it thank you

[Ameralsamt 2558]

My friend, of course, bitcoin is the dominant currency of all other cryptocurrencies, it is the oldest and highest priced, with the best, most honest and fastest features in business, and is traded on platforms well and easily. 

[Ridam 7455]

On 12/30/2020 at 4:23 PM, cryptorios said:

 

Hello friends, I am new in trading, and I often hear analysts warn against buying altcoins when the dominance of Bitcoin in the market is high, and there are those who recommend learning the dominance chart. Where to start and how to take advantage of dominanceto make profit from trading.

Thank you

At first you should know that what is Bitcoin dominance? Basically Btc dominance is ratio of BTC to the total crypto market cap.

If btc dominance is 71 which is currently, 71% of Marketcap of crypto is Bitcoin Market cap and rest 29% is alts Marketcap.

And if we see the trend, if btc dominance increases the general trend is altcoins bleeds(in respect to btc), and if btc dominance decreases alts shows the growth.

You can look BTC Dominance chart in trading view at this link;

https://www.tradingview.com/chart/BgijmdkJ/

[Fixfin 2569]

A while ago I created a post about using dominance to trade altcoins, while I am closer to being a Bitcoin maxi and don't like having my Bitcoin being reduced, there are sometimes you can see signs that appear and make a less risky move.

https://cryptotalk.org/topic/323521-using-bitcoin-dominance-to-invest-in-a-few-altcoins/

In this post I explain how I make a few investments in altcoins and it has been profitable. While Bitcoin dominance reaches 70, altcoins in btc trading pair should have an interesting price. This dominance lately also includes a big market of stable coins, more than 20billion USD that also counts as it supports the altcoin dominance. 

Now we are again close to 70% for Bitcoin so it could be a good time, however I don't want this to be as an advice, it is something I am doing and perhaps for some it won't be good advice.

 

[Quickbee 26]

If Bitcoin dominance increases, then the demand and price of Bitcoin also increases. This is the best time to sell some of your Bitcoins. Similarly when Bitcoin dominance decreases, the value and price of Bitcoin also decreases. This is the best time to buy some Bitcoins. 

[Raqeebzy 6456]

On 12/30/2020 at 11:38 AM, cryptorios said:

 

Hello friends, I am new in trading, and I often hear analysts warn against buying altcoins when the dominance of Bitcoin in the market is high, and there are those who recommend learning the dominance chart. Where to start and how to take advantage of dominanceto make profit from trading.

Thank you

There is always a simple relationship between bitcoin dominance and altcoin price movements over the years. In times when investment increases in bitcoin and bull runs seems closer and inevitable, BTC dominance increases and investors tends increase their percentage portfolio in BTC from altcoin investment. Then it is not advisable to invest in altcoins.

I think you can always check BTC dominance chart on trading view - https://www.tradingview.com/symbols/CRYPTOCAP-BTC.D/

[yonkii 3205]

Dominance is the percentage of the market held by Bitcoin in total marketcap. Bitcoin has high dominance lately that today was higher from 70%. Higher dominance means that most investors are interested in Bitcoin and less in altcoins but I have seen this changes at times when investors start funding altcoins and create very high prices for them.

[Syedbesharat 5423]

When the BTC price increases you have to carefully analyse the altcoin in which you wanna invest or trade because it will give sign of BTC dominance. So if it does move higher much from  opening price then you can have sooner the effect before that you can buy but suggesting small amount is good for short term investment. If the price is higher of coin then wait for price retracking of BTC. Because you will face sudden drop in price or make small amount of profit. Their for always check the graph of BTC and altcoin in which you are  interested. 

[Khan 1414]

Its simple, and if you see that the Bitcoin price is increased the other small coins price will also be increased, like you see the ETH and XRP but the XRP has other issues now and can be considered a long term investment.

[cryptovlek 2597]

On 12/30/2020 at 12:38 PM, cryptorios said:

Where to start and how to take advantage of dominanceto make profit from trading.

We don't know if dominance will be a great factor to invest in altcoins. Bitcoin can keep rising for a long time and altcoins may even shrink as we see happening with many like XRP and TRX. Some are rising a little with Bitcoin without reaching the same percentage and Bitcoin is currently the top investment with Ethereum together. Since altcoins will rise some day we have to wait for the altcoin season but untl then be in Bitcoin in the most of our investment.

[cryptorios 455]

4 hours ago, cryptovlek said:

We don't know if dominance will be a great factor to invest in altcoins. Bitcoin can keep rising for a long time and altcoins may even shrink as we see happening with many like XRP and TRX. Some are rising a little with Bitcoin without reaching the same percentage and Bitcoin is currently the top investment with Ethereum together. Since altcoins will rise some day we have to wait for the altcoin season but untl then be in Bitcoin in the most of our investment.

  This is what we notice now, the dominance of Bitcoin continues to rise, and its price every day achieving ATH and the altcoins have a fixed or low price against Bitcoin, so I think it is not a good time to invest in it.

[zhoutong 2188]

On 12/31/2020 at 11:13 AM, cryptorios said:

 Of course, this is what I also understood, when Bitcoin dominance increasingly in the market, we should not buy the altcoins, because their price will drop.

Thankyou

Yes but when Bitcoin dominance is very high, then maybe it is time to be more careful in altcoins and be ready. When the dominance will start falling you will find the market has shifted to altcoins by looking around. Charts and news help to find if this can be a good start and altcoins will start rising or if this was just a false signal.

[susan8929 811]

I agree with you, in trading with cryptocurrencies it is fundamental to analyze the dominance, since most times it indicates if the altcoins will go up or down.
The higher the btc dominance, the more the cryptos will go down. On the contrary, the lower it is, the more cryptocurrencies will go up.
For example, at the end of 2017 the dominance dropped quite a bit and the main cryptocurrencies started to exceed their historical highs.
I hope that during some time this year the dominance will go down to 50% or even less. We will see what happens.

[percare 3192]

You may make a bet in altcoin and see Bitcoin to keep rising. It is not easy to spot the altcoins that will rise and when. If you buy one and you see Bitcoin going very high and you are stuck then you will think about altcoins again later. You should have a plan that could be to increase the investments in altcoins when dominance is high, close to now and reduce the altcoins when dominance is higher.

[bogdanoff 3173]

Dominance is a double edge sword. You may think that Bitcoin has grown too much and altcoins are low but when Bitcoin drops they keep dropping more. I have seen dominance not falling bellow 60% for more than a year. Maybe there is no hope for altcoins to rise too much like in past again.

[isther69 521]

Yes, indeed dominance greatly influences the price of altcoins because while BTC attracts more investors, most of them sell the money invested in altcoins, significantly reducing its price in the market and increasing the price of BTC due to demand. of purchase that this generates, so that the price of the altcoins can rise evenly with the BTC there must be parity of investors from both sides, as an example I can highlight the reaction of LITECOIN to the upward movement that BTC had which they raised their price with very similar movements.

[velasco19 1753]

In fact, in trading when talking about high BTC dominance it means that bitcoin has a lot of money in capitalization, in tradingview it is possible to see that graph that oscillates between 60% or 70% and it is risky when it is high because it will not get much money to Altcoins and when its dominance begins to decline, the money leaves or is invested again in the other cryptocurrencies, thus giving upward movements or recovery.

[Wanderdark 2178]

Dominance of the Bitcoin means the amount of total marketcap of Bitcoin vs All cryptocurrencies. For example if BTC has a marketcap value of 500 million dollars and all other altcoins have 500 millons dollars, it means BTC dominance in market is %50. 

 

As the Bitcoin dominance decrease, it can mean more money flow from bitcoin is flowing to the altcoins so it is a bullish sign for Altcoins vice versa. 

[koynayak 1923]

Bitcoim dominance is effecting every crypto in the market. If dominance start to climb higher than 70 it won't be good for alts. If there is a 1trilion dollar in crypto's 700b$ is in bitcoin and the other 300b$ is belongs to alts. I think bitcoin dominance will start to decrease in the near future and it'll be better for alts.