This Pine Script indicator tracks Bitcoin market dominance by calculating the percentage of Bitcoin's market capitalization relative to the total cryptocurrency market cap.
Key Features
✅ Real-time BTC Dominance Calculation
Displays the percentage of Bitcoin’s market share in real-time.
✅ Moving Averages for Trend Analysis
Includes two customizable moving averages (MAs) to identify dominance trends:
- Short-term MA (e.g., 20-period) for recent momentum.
- Long-term MA (e.g., 50-period) for broader trends.
✅ Visual Alerts
Background colors indicate dominance levels:
- 🟢 Green: BTC dominance > 50% (strong BTC control).
- 🔴 Red: BTC dominance < 40% (altcoins gaining strength).
- 🟠 Orange: BTC dominance between 40%-50% (neutral zone).
Why Use This Indicator?
- Market Sentiment Analysis: Gauge Bitcoin’s influence on the broader crypto market.
- Trend Identification: Spot shifts in dominance to anticipate altcoin seasons.
- Strategic Trading: Use dominance trends to allocate portfolios between BTC and altcoins.
👉 Learn how to leverage BTC dominance for smarter trades
Open-Source Transparency
The script is open-source, allowing traders to:
- Verify its logic.
- Customize parameters (e.g., MA lengths, alert thresholds).
- Adapt it for advanced strategies.
Note: Republishing the code requires adherence to TradingView’s House Rules.
FAQs
Q1: How is Bitcoin dominance calculated?
A: It’s the ratio of Bitcoin’s market cap to the total crypto market cap, expressed as a percentage.
Q2: What do moving averages reveal in this context?
A: MAs smooth out volatility, highlighting whether dominance is trending upward (BTC strength) or downward (altcoin growth).
Q3: Can I use this indicator for trading decisions?
A: While it provides insights, always combine it with other tools like volume analysis or RSI for confirmation.
Q4: Why does dominance matter for altcoin traders?
A: Declining BTC dominance often signals capital rotation into altcoins—a key signal for altseason opportunities.
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Disclaimer
This tool is for educational purposes only. Cryptocurrency trading involves risks; conduct independent research before making decisions. TradingView does not endorse financial actions based on this indicator.