Bitcoin Altcoin Moon Sheet

The Bitcoin Dominance Cheat or "Moon Sheet" is a popular framework for visualizing how Bitcoin's price and dominance affect the performance of altcoins. By analyzing both Bitcoin Dominance (BTC.D) and Bitcoin’s Price (BTC/USD), the Moon Sheet offers a guide for predicting whether altcoins will likely pump, dump, stay stable, or even enter an "alt season." Here’s a breakdown of the factors and potential outcomes:

Bitcoin Dominance (BTC.D): The percentage of the total cryptocurrency market capitalization that is held in Bitcoin. Higher dominance means Bitcoin holds a larger share of the market; lower dominance indicates more capital flowing into altcoins.

Bitcoin Price (BTC/USD): The current price of Bitcoin in USD, a crucial factor that influences overall market sentiment.

This ALT Coin Season analysis or BTC and ALT Moon Sheet divides outcomes into quadrants or zones based on the direction of BTC dominance and BTC price. Here’s how the zones typically work:

Explanation: When BTC price rises along with its dominance, capital flows primarily into Bitcoin rather than altcoins. This often leads to a sell-off or drop in altcoin prices, as traders move funds from altcoins to Bitcoin, capitalizing on Bitcoin's upward momentum.

Explanation: If Bitcoin’s price is dropping and BTC dominance is increasing, it signals that the market is in a "risk-off" mode. Investors are likely moving into stable coins or Bitcoin for safety, causing significant declines in altcoin prices as investors pull capital out of riskier assets.

Explanation: When BTC price is rising but dominance is falling, some funds are flowing into altcoins. This suggests a more balanced growth, where Bitcoin leads but altcoins hold steady or experience moderate gains. This often indicates a mild risk-on sentiment where traders are open to altcoin investments but still heavily favor Bitcoin.

Explanation: If both Bitcoin dominance and price are dropping, investors are moving capital into altcoins rather than Bitcoin. This dynamic can lead to an alt season, where capital inflow into altcoins accelerates, often resulting in substantial gains. This outcome is generally favorable for altcoins as investors diversify, betting on high-reward altcoins rather than Bitcoin.

Check our BTC Dominance cheat sheet, that shows you when to expect the start of the ALTCoin season...

For Altcoin Traders: The Moon Sheet can be used to time entries and exits based on the expected performance of altcoins in relation to Bitcoin’s trends.

For Bitcoin Maximalists: Tracking BTC dominance helps understand whether Bitcoin is dominating the market or if altcoins are starting to pull capital away from Bitcoin.

The Moon Sheet simplifies understanding these dynamics, but remember that external factors like news, regulations, or market events can always shift expected outcomes.