Why you should avoid trading Alts when BTC Dominance is High

28 Jun 2023 · 1 min

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In this commentary, the speaker emphasizes the importance of monitoring Bitcoin dominance before considering altcoin trades. A high Bitcoin dominance indicates that market attention and capital are flowing into Bitcoin, leaving altcoins comparatively weak. The speaker notes that although Bitcoin dominance attempted to revert toward its historical mean, it has continued to rise, and there are reasons to expect this upward trend to persist. Consequently, altcoin investors should be cautious, as they are trading assets that are currently out of favor.

Bitcoin dominance. This is a huge, huge, huge chart that you need to look at before you even start looking at altcoins. Because when Bitcoin dominance is high, it means that as this thing is going up, it means more people are putting their attention on Bitcoin rather than altcoins. So if you are an altcoin investor or trader right now, you are trading an asset that is weak. So what is the situation with Bitcoin dominance? The dominance actually tried to revert back into the mean or even back to the range low, but clearly you see that didn't work and it's still going higher. And there is good reason to believe that this thing is still going to continue higher.