The TOTAL chart shown displays the market cap of all crypto currencies. In the last week, there has been an increase of $273 billion in the crypto market, which equates to an increase of over 30%. This means that on average, every cryptocurrency has increased by 30% in a week. And recently on media there have been a lot of claims of a bull run or bull market, and that’s not without reason because 30% is huge! But there is more to understanding the market and trading than just that so we can look at a few other metrics to understand what the market has been doing.
But if we look at the BTC chart below, we can see that in this same time period BTC has increased by 45%. So what this means is that BTC has been getting more of the money flow than the average crypto. another way to say this in typical jargon is that it has been bitcoin season. And as traders, this is generally not great for us as we typically trade altcoins because they tend to outperform BTC.
Another way to view this idea is by using BTC.D (bitcoin dominance). This chart uses the market cap of bitcoin compared to all other cryptocurrencies combined. And what it shows is that in the last week, BTC.D has seen an increase of over 11%, meaning that BTC’s dominance over the market has increased over the last week. Further asserting that BTC season has been among us. If the range shown on the chart breaks out higher, it is fair to assume that BTC season will continue. For altcoins to start taking off, BTC.D will need to begin dropping while the market remains bullish.
And one last chart that I like to incorporate with these ideas is ETHBTC. I use this as a general guide for altcoins because when ETH is performing well against BTC, typically the rest of the altcoins are doing the same. On this chart we can see that recently our support floor has been around 0.066 and within the last week this has broken lower. Combining that idea with the previous ones we’ve discussed with TOTAL and BTC.D suggests that people have been taking money from their altcoins and putting it into BTC (again, very bad for traders that prefer to trade altcoins). Aside from that, ETHBTC has been in a recent downtrend, and for altcoins to start pumping or at least a small altcoin season, we need to see this begin an uptrend so that ETH (and other alts) can start to outperform BTC.
And I want to include a short list of the charts I’ve referenced so others can follow them too. The following will all be in the form of “TICKER : the information they tell us”
TOTAL : Market cap of all cryptocurrencies
TOTAL2 : Market cap of all cryptocurrencies excluding BTC (I didn’t show this one in this post, but it’s a good chart)
BTC.D : Bitcoin dominance by market cap. The formula for this is (BTC Market Cap)/TOTAL
ETHBTC : Good aauge of altcoin performance compared to BTC
The TOTAL chart shown displays the market cap of all crypto currencies. In the last week, there has been an increase of $273 billion in the crypto market, which equates to an increase of over 30%. This means that on average, every cryptocurrency has increased by 30% in a week. And recently on media there have been a lot of claims of a bull run or bull market, and that’s not without reason because 30% is huge! But there is more to understanding the market and trading than just that so we can look at a few other metrics to understand what the market has been doing.
But if we look at the BTC chart below, we can see that in this same time period BTC has increased by 45%. So what this means is that BTC has been getting more of the money flow than the average crypto. another way to say this in typical jargon is that it has been bitcoin season. And as traders, this is generally not great for us as we typically trade altcoins because they tend to outperform BTC.
Another way to view this idea is by using BTC.D (bitcoin dominance). This chart uses the market cap of bitcoin compared to all other cryptocurrencies combined. And what it shows is that in the last week, BTC.D has seen an increase of over 11%, meaning that BTC’s dominance over the market has increased over the last week. Further asserting that BTC season has been among us. If the range shown on the chart breaks out higher, it is fair to assume that BTC season will continue. For altcoins to start taking off, BTC.D will need to begin dropping while the market remains bullish.
And one last chart that I like to incorporate with these ideas is ETHBTC. I use this as a general guide for altcoins because when ETH is performing well against BTC, typically the rest of the altcoins are doing the same. On this chart we can see that recently our support floor has been around 0.066 and within the last week this has broken lower. Combining that idea with the previous ones we’ve discussed with TOTAL and BTC.D suggests that people have been taking money from their altcoins and putting it into BTC (again, very bad for traders that prefer to trade altcoins). Aside from that, ETHBTC has been in a recent downtrend, and for altcoins to start pumping or at least a small altcoin season, we need to see this begin an uptrend so that ETH (and other alts) can start to outperform BTC.
And I want to include a short list of the charts I’ve referenced so others can follow them too. The following will all be in the form of “TICKER : the information they tell us”
TOTAL : Market cap of all cryptocurrencies
TOTAL2 : Market cap of all cryptocurrencies excluding BTC (I didn’t show this one in this post, but it’s a good chart)
BTC.D : Bitcoin dominance by market cap. The formula for this is (BTC Market Cap)/TOTAL
ETHBTC : Good aauge of altcoin performance compared to BTC