I've noticed that many people don't really understand what Bitcoin dominance is and why it should matter to them. Yet, it's a key indicator for navigating the crypto market cycles.

So to keep it simple, Bitcoin dominance just measures the percentage of the total crypto market value that Bitcoin represents. If you look at the total market cap of all cryptocurrencies, what percentage does Bitcoin take? That's it. And it's much more useful than you think for understanding where we are in the cycle.

The reason I find this important is that it really shows you the market sentiment. When Bitcoin dominance rises above 50%, it's usually because investors are becoming cautious and seeking safety. Bitcoin is perceived as the most reliable asset, so people put their money there, especially during bear markets. Conversely, when dominance drops below 50%, it's often a sign that people have more confidence and are seeking higher returns. That's when altcoins explode, during bull markets.

What’s really interesting to observe is Bitcoin dominance movements over cycles. When you see dominance increase, it generally means money is leaving altcoins to flow back into Bitcoin. The opposite is also true: a decrease in Bitcoin dominance can signal the start of an altcoin season, where alternative tokens begin to outperform BTC. That’s the moment you really need to pay attention to what’s happening.

Basically, using Bitcoin dominance as an indicator to analyze the market is a really powerful tool to know which phase of the cycle we're in. It’s one of the things I regularly watch to understand the overall dynamics.