Author Topic: Can someone explain Bitcoin dominance? I see it on charts but don't get it  (Read 16 times)

longtime2

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I've been getting into crypto trading and keep seeing "Bitcoin dominance" on sites like TradingView. I understand it has something to do with Bitcoin's market share, but I'm not sure how to actually use that information. Does a high percentage mean I should buy Bitcoin or altcoins? And when it drops, what does that signal? I'd love a simple explanation of what this metric means and how traders actually use it to make decisions.

flowers2

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Re: Can someone explain Bitcoin dominance? I see it on charts but don't get it
« Reply #1 on: February 25, 2026, 06:50:58 PM »
Great question, and it's one of those metrics that seems confusing at first but is really useful once you understand it. Bitcoin dominance basically shows Bitcoin's market cap as a percentage of the entire crypto market. When dominance is rising (say above 60%), it usually means investors are playing it safe and moving into Bitcoin, often during uncertain times. When it's falling (towards 40-50%), money is flowing into altcoins, which can signal the start of "altcoin season." The key is watching the trend, not daily moves. I found a really clear explanation of btc dominance that breaks down exactly how to read the charts, what different percentage ranges mean historically, and how to use it for portfolio decisions. Much more useful than just guessing.