Is #BTC dominance just an inverse $ETH / $BTC chart? 🤔 Let’s explore.

$BTC dominance ($BTC.D) has traditionally been used to measure whether #Bitcoin or #altcoins are leading the market. 

But as this chart shows, BTC dominance is heavily correlated with $ETH underperformance relative to $BTC.

When $ETH / $BTC drops (blue line), BTC.D (pink line) rises. This cycle, $ETH has struggled, keeping $BTC.D high. But, other alts like $SOL, from June 23 - March 24 & $XRP from Nov 24 - Jan 25 have massively outperformed $BTC, even while $ETH lags.

If you had waited for a signal of $BTC.D to top to rotate, you could have missed many opportunities already in the #altcoin market!

The takeaway? $BTC dominance might not be the best indicator of #altseason anymore.

We’re in a fragmented market where specific altcoin narratives and sectors (DeFi, AI, and even memes etc.) are driving performance independently of $ETH.

My advice would be to watch for individual out-performers instead. From a charting perspective, look at the individual token pairings vs $BTC for momentum and break outs 🚀

Thoughts?
#BTC #ETH #BTC #BTC #Bitcoin #altcoins #ETH #BTC #ETH #BTC #ETH #BTC.D #SOL #XRP #BTC #ETH #BTC.D #altcoin #BTC #altseason #ETH #BTC