I looked inside Bitcoin Dominance over four years and this is what I found

Hello and welcome to my first livestream here on TradingView. My name is Doug from DigitalCurrencyTraders.

In this video, I'm going to talk about how I looked inside Bitcoin dominance over the past four years, and I'm going to show you what I found.

So, before I go into these charts and show you what I found, I'm going to explain what these color codes mean so that you get some sense out of this. Our trading system looks at the altcoin versus BTC pairs rather than all, as well as the altcoin versus US dollar pairs.

Trade on KuCoin, Automate with 3commas.

Bitcoin vs. Altcoins: Trading Insights 

But our main trading signal is looking for when do we hold Bitcoin and when do we hold altcoins.

We can see it really clearly on this Litecoin chart when we compare it to Bitcoin, where in the last little while, if we had been holding Litecoin, we would have made a little bit of profit, yet if we had been holding Bitcoin, we certainly would have made a lot more profit.

We can see that played out in the chart with the alt versus BTC chart.

We can see when should we be holding this altcoin in order to grow the number of satoshi that we have.

Why Focus on ALT/BTC Pairs?

I believe that Bitcoin is going to go up very much more, maybe to $100,000 or $500,000 each Bitcoin, but each dollar is not going to go up anymore.

So, we really want to focus on growing the number of satoshi that we have and trading the altcoins when they are going to grow faster than Bitcoin.

Analyzing Altcoin Performance So, what we do is we look at all of the coins, and we've given them an exponential moving average crossover that has proven to work out very well.

Then we look at all of the coins, and we average them all together, so that all of the coins that are in alert status, this yellow color, we count them up. Let's go through a few more BTC pairs here.

All of the coins that have transitioned past alert status into hold status, we count all of those coins to see how bullish the altcoins are compared to Bitcoin.

Understanding Bitcoin Dominance Trends 

Now another way that everyone is used to looking at this is by looking at Bitcoin dominance. If we look at Bitcoin dominance right now in a longer period of time, we can see that it's probably, and I'm thinking that Bitcoin dominance is likely at a point where it's going to be dropping from here.

It could be one of those life-changing opportunities where Bitcoin dominance drops very quickly, and it may be while Bitcoin prices are rising. So, we want to put Bitcoin price in the background to see what happened when that changed before, where Bitcoin dominance was going up while Bitcoin price was rising.

Then there was some noise, and Bitcoin dominance started to drop while Bitcoin prices were going up.

Altcoin Season and Bitcoin Dominance 

Now that's altcoin season where we're really going to grow the number of satoshi that we have.

Right now, we have 129 coins already in hold status, so that's a huge part of the bull signal already played out. We can see how that set up.

We were talking about this as the alerts were going through, and those alerts have transferred into hold status now.

There are a number of charts that are set up really beautifully right now that if Bitcoin dominance is dropping, that is already showing us that altcoins are making more money than Bitcoin, and it would be a better idea to hold altcoins to grow your Bitcoin.

So now you got some of the background idea about how we use the color coding to give us an idea of where the altcoins are when we add those up over time.

It actually lets us look inside Bitcoin dominance, so we can see all of the coins that are turning the corner and getting bullish as before Bitcoin dominance has actually broken this trend and come down.

Analyzing Historical Data for Predictions We've already seen a whole bunch of setups and opportunities. If I scroll back a little bit here, we can start to see what the alt and control panel gives us on a daily basis is that we can see which coins are going through our entry signal.

So, many of these coins are fantastic, but what I want to talk about are these four charts. I'm going back to 2020.

This is the accumulated data of all of the hold status and alert status over time, but it also includes some data of the bear market, where what we have this orange line that, when the orange line grows up, that shows that we're going really bearish. When the red line goes up, that shows that all of the coins are going down compared to Bitcoin into brand new levels, a real bear market.

Now we can start to see what happens before every bull market. This is really good because, at the end of 2020, we already know that in 2021 there was a big bull market.

Identifying Bull and Bear Market Trends So, I want to point out right here that the orange line went up very high just before the big bull market came in. We had red, we had orange.

So now, I'm going to go into 2021, and at the beginning of 2021, we can see the orange all drop down, yellow came up very strong, and then that transitioned into many different hold status coins. We went back into partial hold status, and then the bull market continued for quite some time as everything stayed in hold status. That means it kept going up and up, and the altcoins were growing versus Bitcoin for this entire period for those months of time.

Patterns Leading to Bull Markets 

Then everything topped out and pulled back. We had a bit of a bull market from July until November of 2021. A bit more noise here, we can see that we had a bit of a bull wave here at the end of 2021. So again, I want to point out the red and the orange just before the bull wave. Those are so important.

Now, as I'm going into the altseason co-pilot for 2022, we can see that there was an extreme red period here where everything went into capitulation lows.

Then, after that, we had a really nice bull market with a couple of waves. Now, of course, we know that in 2023 we started off with a bit of a bull market from January and February. We can see that played out here in our charts, where we can see the yellow preceded, then we went into hold status for a while.

But as the hold status ends and we see the partial hold status picking up with the light green, then the light green is descending while the green is descending and the orange is rising, we already see here that we are going into a bear market.

Understanding Market Cycles and Trends 

Really important, the bear market continued. We had a couple of fake outs, then we had the big dip here in June where everything hit capitulation lows, and that red there marks out the very bottom.

Now, the reason I'm really excited about this is that when I put these four together, let me see if this comes out large, when we put this four together, we can see how important it is that we had these liquidity grabs just before the big bull run.

I believe that we're going to be staying in hold status for very much longer during this bull run, much like we did in 2021.

Future Projections and Bitcoin Dominance 

So now, if we go back to Bitcoin dominance and get some projections there, this is totally imaginary, but if this does make a big move down, I'm expecting and I'm anticipating that dominance will be coming down to the new lows, to extreme lows.

I also want to watch for the US dollar Index to be making this kind of pattern.

The US dollar Index, we've been watching for this top formation to play out. There it is, one, two, three top formation really set itself up well, and now with the Fibonacci, which I don't really use a lot except to make pictures, it matches to where we'll have support and resistance, and a triple bottom in the US dollar Index.

Exploring Altcoins and US Dollar Index Patterns 

So, in my mind, if the US dollar Index comes down to these levels,

and Bitcoin dominance comes down to new levels, I'll be watching for top formations in the altcoins at that time.

So that's kind of my long-term plan now, watching out what's going on for the altcoins. And I believe that what we're seeing with this setup is that we're now at the very beginning stages of altcoins starting to take off better than Bitcoin.

So we can go into many of the alt versus BTC pairs, and we can stretch it out into a longer period of time, and put Bitcoin into the background.

Identifying Potential in Altcoin vs. BTC Pairs 

What I'm looking for are the coins that have held their bottom versus Bitcoin since the past sometime in the past. It doesn't matter what the coin is. I don't know what the technologies are. I'm pretty much a noob in all that stuff. It doesn't matter what I'm looking to; this will tell me what all of the other investors are already knowing about this particular project. So this one's kind of spiky. Maybe it won't go anywhere.

This one I'm biased on. I did just purchase into some of this because of the way this pattern is set up.

Assessing AI-based Altcoin and Trading Strategies AGIX, a general artificial intelligence related project, and if it gets some pump going, it could go somewhere. And with the pattern that it's given in the past, this gives us a very nice risk to reward ratio for this kind of trade setup.

Where if we're looking to do a spot trade with no leverage, then we could put on a very small trade and put our stop loss something like this. And this is converting our Bitcoin into AGIX or whatever the coin is that matches this pattern.

Daily Analysis of 270+ Cryptocurrencies 

So now we're going to go through all of the coins, and this is what we're doing, and we go through all the coins and we talk about it in our Discord.

So that we can get ready for these potentials to take our Bitcoin. Take, if I'm, you know, richer than I am, and I just use one Bitcoin here for a nice easy math, this would do some pretty crazy gains on the number of Bitcoin that I have. And since I think Bitcoin is going to go up very much more than the US dollar over a period of time, I'm much more interested in the altcoin versus Bitcoin price charts than I am the altcoin versus US dollar price charts.

Invitation to Join Community and Access Resources 

And I'll end by telling you to join us over on Discord.

Come and check my DigitalCurrencyTraders profile over on Trading View, where I'm talking about some of the whale feeding zone.

And I haven't been posting here much in the past, but I'm going to post more here now because we've got some things going on over in our free Discord that give you a lot of information. So, you can see that we are giving the information out about the altcoin season coming here. You are here; it was setting up at the beginning of November.

Recent Market Analysis and Final Thoughts 

So, if I jump back to the present and I go into the more recent post, are you too late for these? There are specific patterns where you're not too late, but you soon will be because we'll be in hold status for a long time. And jumping in when it's too late is very much more risky.

At any rate, I will finish by inviting you to join our Discord and head over to get the free PDF so that you get our entire trading plan for free.

It's 32 pages long. I wrote it back in 2015. This wasn't created by Chat GPT. This is a real trading plan. This is what I've been doing for years. So jump in there, grab it, join our community, and I would love to see you in there. Anyway, that's my first test of the live stream here on Trading View. Now, I'll finish it up and see how it actually turned out. Trade safe and keep those losses small.