Bitcoin dominance could continue to drop in its current state but it still would create no altseason.

The problem 👇

There are good metrics to use and bad metrics to use.

Bitcoin dominance without context is NOT one of them.

Remember when the timeline went wild once it started dropping? A whopping 10%.

That was an insane altseason we had when it did wasn't it.

Lemme explain:

1/ Bitcoin dominance INCLUDES stablecoins. Stablecoin dominance has strongly been on the rise lately.

So while people look for altseason when it drops, without context it's a fake signal.

2/ Bitcoin dominance doesn't work when Bitcoin is in a downtrend.

While Bitcoin dominance has indeed dropped a good amount. Bitcoin is also trading $40,000 lower than it's peak.

Bitcoin dominance has dropped about 10%, but its price has dropped about 30%.

So in terms of $ value which we use to make a profit, altseason is nowhere to be seen despite Bitcoin dominance dropping.

It needs a confirmed bottom and preferably an uptrending Bitcoin as it did in the past.

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Why am I saying this again? A few weeks/months when I mentioned this, it was almost blasphemy to speak about it.

Today when altcoins keep making new lows after lows some realize (sadly the hard way) that things are indeed not that straightforward and need context.

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Listen, Bitcoin dominance isn't entirely useless. It's a good metric when we got a strong bull market. Especially when Bitcoin is going up.

In the right environment it works. But take some conditions away, and it turns into a very misleading indicator (don't tell this on crypto twitter).

And yet, it's almost the most used chart this cycle.

There are indications that will light up when risk-on environment on alts kickstart again.

When the mythical "altseason"'might happen. But those haven't lit up yet.

Will be here when they do. And it won't be me just looking at Bitcoin dominance isolated.