I've noticed that many people ask how to really analyze crypto market cycles. The key is understanding BTC dominance — it's an indicator you can't ignore if you truly want to grasp where the market is headed.

Basically, Bitcoin dominance measures what percentage of the total crypto market capitalization is represented by BTC. It's simple but a powerful signal. When you look at this ratio, you immediately understand whether people trust Bitcoin or are chasing after altcoins.

Here's what I generally observe: when dominance rises above 50%, it's often a sign that investors are becoming cautious. Bitcoin becomes a safe haven, especially during bear markets. It makes sense — when things get risky, people retreat to the most established asset. Conversely, a low dominance signals that altcoins are attracting attention. Traders start looking for small projects that could explode, and that's usually what we see in a bull market.

Now, what's really interesting with BTC dominance is how to use it to identify market phases. When you see dominance increase, it means capital is leaving altcoins to focus on Bitcoin. Conversely, a decrease can signal the start of an altcoin season — that moment when everyone talks about alternative tokens and they outperform Bitcoin.

It's a tool we use a lot to read cycles, and honestly, it's very useful to know which phase we're really in. Many traders I know keep a constant eye on this indicator.