BTC Dominance on charts: how to read Bitcoin dominance and predict the altseason

Current Situation (January 2026): Bitcoin dominance remains at 55.87% according to global market data, demonstrating the stable leadership of the first cryptocurrency. But what does this mean for your portfolio and should you prepare for a phase change?

What Does Bitcoin Dominance Show

The BTC dominance index reflects the share of Bitcoin’s market capitalization among all crypto assets. The calculation is simple: BTC Share = Bitcoin Market Cap / Total Crypto Market Cap × 100%

This indicator is a psychological market barometer. When it rises, investors shift into “defensive mode” and concentrate funds in the most reliable asset. When it decreases — the crowd seeks profit in risky projects and altcoins.

Where to Watch the Real-Time Dominance Chart

Main platforms for analysis:

• TradingView — enter the ticker BTC.D to get the full history with indicators
• CoinMarketCap — the “Global Charts” section shows dynamics and rankings
• CoinGecko — the “Market Cap Dominance” tab with historical analytics

The Bitcoin dominance chart online updates in real time, allowing you to catch entry points for alts and exit before corrections.

How to Interpret Movements on the Chart

Rising line = Investors are rushing into Bitcoin. This may indicate a phase of uncertainty or a correction in alts.

Falling line = Capital is flowing into altcoins. The risk is increasing, but profit opportunities are also present.

Sideways movement = The market is waiting. Usually precedes a sharp move in one direction.

By reading this chart alongside BTC price and trading volumes, you can identify the market cycle stage — recovery, growth, overheating, or correction.

Forecasts for 2026: Where Is Dominance Heading

The current level of 55.87% is in the “balance zone.” Experts consider three development scenarios:

Scenario 1: Dominance rises to 58–62%

• If the market faces macroeconomic risks
• Investors will hide funds in the most liquid asset
• Alts will suffer, but Bitcoin will remain favored

Scenario 2: Dominance drops to 40–45%

• A full altseason will begin (like in 2021)
• New capital will flow into AI projects, L2 solutions, RWA tokens
• Small caps will temporarily lead in profitability

Scenario 3: Stabilization in the range of 48–56%

• The most likely option
• The market will remain diversified, but BTC will retain trust
• Alt volatility will be higher, but so will opportunities

How BTC Dominance Affects Altcoins

When dominance grows:

• Altcoins fall faster than Bitcoin
• Liquidity in small caps dries up
• Spreads (the difference between bid and ask) widen
• The risk of technical failures increases

When dominance falls:

• An altseason begins — a period when alts outperform BTC in profit percentage
• Good projects can see 2x–10x moves within weeks
• Trading volumes on altmarkets surge
• New trends emerge (in the past — DeFi and NFT, now — AI and RWA)

Historically, altseasons start when dominance drops below 45%.

Practical Trader Strategy

Step 1: Monitor the dominance trend If it rises for several weeks — it’s a signal to reduce risks in alts. Move some into stablecoins or consolidate positions.

Step 2: Catch divergences If BTC price drops but dominance stays flat or rises — it means alts are falling even faster. Don’t rush into them.

Step 3: Combine with technical analysis The Bitcoin dominance chart works best when paired with RSI, volumes, and support levels on Bitcoin itself.

Step 4: Take profits in alts Altseason peaks rarely last long. When alts show +100–200%, start taking profits. Dominance often reverses upward suddenly.

Frequently Asked Questions

Can dominance be used as the main trading signal? No, but definitely as part of a system. Combine with BTC analysis, fundamental news, and your risk management.

At what dominance does altseason start? Usually below 45%, but there are exceptions. During BTC price corrections, alts can grow even with dominance above 50%.

Can dominance fall below 30%? Theoretically yes, if altcoin ecosystems grow exponentially. But historically, this has not happened.

Summary

Bitcoin dominance is not just a number but a reflection of market sentiment. Learning to read its chart gives an advantage in choosing entry points for alts and exiting risky positions. Against the backdrop of Web3 development, AI tokens, and infrastructure, BTC dominance will remain a key indicator for active market participants in 2026 and beyond.