Trading Analyst at 4C
Principle #3:When Bitcoin Dominance decreases, people are more likely to buy Altcoins, leading to Altseasons.
Principle #4:The sharper the decline in Bitcoin Dominance, the stronger the Altseason.
Two ways — either by:a) Selling Bitcoin to fiat (e.g. Dollar, Euro, Pound) or by,b) Selling Bitcoin for Altcoins.
As Principle #2 suggests, Bitcoin Dominance decreases when more and more people offload Bitcoin.
But when Bitcoin Dominance decreases — that is a totally different story.
This usually translates into people buying Bitcoin and selling Altcoins.
That is because people are more willing to hold Bitcoin rather than Altcoins.
Just at a glance at these two core principles, you can see that stocking up on Altcoins when Bitcoin Dominance is in an uptrend isn’t an ideal strategy.
Principle #2:Bitcoin Dominance decreases when more and more people sell Bitcoin.
Principle #1:Bitcoin Dominance increases when more and more people buy or simply hold Bitcoin.