I've noticed that many people don't really understand what Bitcoin dominance is, even though it's a super useful tool for reading the market.

Basically, BTC dominance measures what percentage of the total crypto market is Bitcoin. If you add up all the cryptocurrencies and see what percentage is just Bitcoin, that's what you get.

Why is it important? Because it tells you a lot about the state of the market. When Bitcoin dominance rises above 50%, it means people are scared. They flock to Bitcoin because they see it as the safest asset. You see this a lot in bear markets.

Conversely, when BTC dominance drops below 50%, it's the opposite signal. Investors start looking for returns elsewhere, in altcoins. That's when the altcoin season begins, where small projects explode while Bitcoin stagnates.

What I've learned from observing cycles is that Bitcoin dominance acts like a market thermometer. When it rises, it means money is moving away from altcoins and back into BTC. When it falls, the opposite happens.

So if you want to understand which phase of the cycle we're really in, look at Bitcoin dominance. It's an indicator we shouldn't ignore.