Bitcoin Dominance vs Altseason: How to Read It

Bittime - Whenever the crypto market starts to move up, there are two terms that often appear in various communities and social media, namelyBitcoin dominance and altseason. Check out the review regarding Bitcoin dominance vs altseason in this article.

In the crypto world, Bitcoin's movements often serve as a "compass" that determines the market's direction. When Bitcoin's price rises sharply, most other digital assets also rise, but not always to the same extent.

On the other hand, there are times when altcoins actually outperform Bitcoin, outperforming Bitcoin overall. This phenomenon is calledaltseasonTo understand when Bitcoin dominates the market and when altcoins take over, you need to understand more about what they are.Bitcoin dominance vs altseason and how to read it.

What Is Bitcoin Dominance?

Sumber: Coinmarketcap

Bitcoin Dominance is a measure of Bitcoin's market value relative to the overall crypto market. Simply put, it's a way to gauge how strongly Bitcoin influences the movement of other digital assets.

For example, if the total market value of all crypto is 2 trillion dollars and Bitcoin accounts for 1 trillion dollars, then Bitcoin's dominance is at 2 trillion dollars or 50%. This number is important because it shows how much confidence the market has in Bitcoin compared to altcoins.

When Bitcoin dominance rises, means investors are investing more in Bitcoin than other coins. This typically occurs during times of market uncertainty, and Bitcoin is considered the safest asset in the crypto world.

On the contrary, if Bitcoin dominance drops, this could be a signal that interest in altcoins is increasing, and this is an early sign of alt-season.

Read also: Altcoin Season Index: A Joyful Guide to Welcoming Altseason 2025

What is Altseason?

Altseason A bull run is a period during which most altcoins (other than Bitcoin) experience larger price increases than Bitcoin. This typically occurs after a major bull run for Bitcoin, when investors begin to seek higher-profit opportunities in other assets.

According to CoinMarketCap Altcoin Season Index, a period can be called an altseason if75% of the top 100 altcoins recorded better performance than Bitcoin in the last 90 days.

During altseason, altcoins like Ethereum, Solana, and Avalanche often surge sharply, while Bitcoin tends to move steadily or even correct slightly.

Typical characteristics of an altseason include increased altcoin trading volume, the emergence of new trends like DeFi or AI tokens, and rising optimism within the community. Many traders capitalize on this momentum to achieve significant profits in a short time.

Bitcoin Dominance vs Altseason

Relationship betweenBitcoin dominance vs altseasonIt can be likened to a swing. When Bitcoin dominance increases, altcoins typically weaken. Conversely, when Bitcoin dominance decreases, altcoins experience a surge.

This change reflects a capital rotation in the crypto market. As Bitcoin's price rose rapidly, many investors flocked to BTC, perceived as the safest option.

However, after Bitcoin reached a certain peak, some investors began to shift their funds to altcoins in search of higher potential returns.

This is why understanding Bitcoin dominance changes is important, as small shifts in dominance percentage can provide early signals about market direction.

For example, if Bitcoin dominance drops from 52% to 47% in a short period of time, it could signal the beginning of an altseason.

Read also: Altcoin Season Index Breaks 80: Are We Already in Altseason?

How to Read Bitcoin Dominance

ReadingBitcoin dominanceIt's actually quite simple, but it requires careful attention. Here's a general way to understand it:

1. Dominance up + Bitcoin price up: Bitcoin dominates the market. Investors choose to play it safe, while altcoins typically lag behind.

2. Dominance down + Bitcoin price up: This is a sign that altseason is starting. Capital is starting to move into altcoins.

3. Dominance up + Bitcoin price down: The market is sluggish, investors are leaving altcoins and returning to Bitcoin.

4. Dominance down + Bitcoin price down: The entire market is correcting, including Bitcoin and altcoins.

You can see the Bitcoin dominance chart on platforms like TradingView by typingBTC.Din the search bar. This chart is often used by professional traders to gauge market sentiment before making decisions.

Read also: Bitcoin Price Prediction Q4 2025: Analysis and Prospects

How to Leverage Bitcoin Dominance for Trading

Bitcoin dominance can be used as a tool to help determine trading strategies. Here are some ways to utilize it:

1. Determining the time to enter altcoins: If Bitcoin's dominance begins to decline and altcoins' trading volumes increase, this could signal the beginning of an altseason. Astute traders will start to invest in altcoins with strong fundamentals before their prices surge.

2. Avoiding risks when dominance rises: When Bitcoin's dominance continues to rise, the market typically becomes more cautious. During this period, it's safer to hold Bitcoin or stablecoins while waiting for the altcoins to rebound.

3. Reading the direction of market trends: By looking at the combination of Bitcoin's price and its dominance level, you can understand whether the market is heading towards a bullish phase or is starting to weaken.

However, it's important to remember that Bitcoin dominance isn't the only analytical tool. Many other factors also influence crypto price movements, such as global economic conditions, regulations, and emerging technology trends.

Read also: Unbanked Documentary Releases October 31st: The True Story Behind a World Without Banks

Conclusion

UnderstandBitcoin vs dominance altseason can help you read the direction of the crypto market more accurately. When Bitcoin dominance is high, the market tends to be cautious and focuses on the main asset. Conversely, when dominance decreases, altcoins begin to take center stage.

Observing these dominant movements can be a first step in developing a more informed investment or trading strategy. However, remember to always exercise caution and conduct research before making any decisions, as the crypto market remains fast-paced and full of surprises.

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Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

What is Bitcoin dominance?

Bitcoin dominance is the percentage of Bitcoin's market value compared to the total crypto market as a whole.

What is altseason?

Altseason is a period where most altcoins rise higher than Bitcoin over a certain period of time.

What is the relationship between Bitcoin dominance and altseason?

When Bitcoin dominance decreases, altcoins typically rise. Conversely, when Bitcoin dominance increases, altcoins tend to weaken.

How to view Bitcoin dominance data?

You can view the BTC.D chart on TradingView or real-time data from CoinMarketCap.

Can Bitcoin dominance be used for trading?

Yes, many traders use it to determine the right time to enter or exit the altcoin market.