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 going to be talking why the Bitcoin dominance is so important and why you need to be paying attention.
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 was also posted on Coin Logic, my crypto only blog and research site!
Wanna get on a path to financial freedom?
Join the Logical Trading Academy!
https://logicaltrading.academy
Trading Education | Trade Community | Trade Alerts | Market Analysis | Trading Indicators and Strategies
Get my 'Anyone Can Be A Trader' eBook Today!
Just getting started as a trader? Check out my latest book that can give you some direction for your trading journey!
'Anyone Can Be A Trader' is available on the Gumroad store if you want to pay with a card as well as the Hivelist Store is you want to pay with crypto!
Get edge in the markets with the Logical Trading Indicator
Get this game changing indicator that can help you gain some serious edge in the markets while still living your life!
Get the Logical Trading Indicator from my Gumroad Store today!
Hive Users Get Get the Full Bundle NFT
Hive users can get both the eBook and trading indicator with this limited edition bundle offer on @nftshowroom! Only 200 NFTs available!
Get the Hive NFT today!
Disclaimer: The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
Posted Using InLeo Alpha
Posted Using InLeo Alpha
