I noticed that many in the community don’t quite understand how Bitcoin dominance works and why it’s important to monitor it. In fact, it’s one of the key indicators for understanding where the money in the market is flowing.

Bitcoin dominance (BDI) is simply the share of BTC market capitalization relative to the total crypto market capitalization. It’s currently holding at 55.72%, and this shows that Bitcoin still dominates, but altcoins are starting to gain strength. When this metric rises, it usually means investors are moving funds specifically into Bitcoin—most often during uncertainty in the market. A decline in dominance, however, signals the start of an альтсезон, when capital flows into altcoins.

To track these processes in more detail, I always look at the ETH/BTC and XRP/BTC pairs. They work as a health barometer for altcoins. If ETH/BTC is rising, it’s a sign that capital is moving out of Bitcoin into Ethereum, meaning altcoins are preparing for a surge. XRP/BTC shows demand for one of the most liquid tokens and can provide a signal for broader market moves.

How do I apply these signals in practice? When Bitcoin dominance is rising, and both of these pairs are falling, it usually means you should be more cautious with altcoins and keep positions in BTC. Conversely, if ETH/BTC and XRP/BTC break out of a downward channel while dominance is falling, that’s a green light for altcoins. Right now, BTC is showing +4.21% over 24 hours at a price of 69.71K, ETH is up +5.21% to 2.15K, and XRP has increased by +4.07% to 1.35. This indicates healthy growth across the entire market.

For analyzing Bitcoin dominance and these pairs, I use several approaches. First, I look at support and resistance levels on the charts—they show possible reversals. Second, RSI helps determine whether the market is overbought. Third, moving averages (EMA50 and EMA200) provide insight into the long-term trend.

As for tools, TradingView is my main choice. There, you can build charts online, analyze all the pairs you’re interested in, and apply indicators directly on the charts. CoinMarketCap and CoinGecko are good for tracking overall data on Bitcoin dominance and the movements in the altcoin market.

The main takeaway: if you want to understand what’s happening in the crypto market, be sure to watch Bitcoin dominance and these pairs. This will give you a much clearer picture than just looking at individual prices. Personally, I regularly check these metrics on Gate, where it’s convenient to track the quotes of BTC, ETH, XRP, and other assets in real time.