Market analysis using bitcoin dominance & usdt dominance chartsBitcoin / TetherUSBINANCE:BTCUSDTBIGTAKERWe aim to conduct an in-depth analysis of the correlations among four key indicators used to interpret the complex dynamics and investor sentiment in the cryptocurrency market — Bitcoin Dominance, USDT Dominance, TOTAL3, and the Coinbase Premium — and to share insights on how these can be effectively utilized in real trading strategies. By analyzing these four indicators together, traders can identify the overall market trend, gauge the vitality of the altcoin market, and assess institutional participation, which provides a foundation for developing mid- to long-term trading strategies. First, please click Boost (🚀) so that more people can see this post. 💡Understanding the Key Indicators Bitcoin Dominance: BTC.D The ratio of Bitcoin’s market capitalization to the total cryptocurrency market capitalization. It represents Bitcoin’s market strength relative to altcoins. USDT Dominance: USDT.D The ratio of Tether (USDT) market capitalization to the total cryptocurrency market capitalization. It helps identify risk-on/risk-off sentiment among investors and assess the level of market liquidity. TOTAL3: TOTAL3 The total market capitalization of all altcoins excluding Bitcoin (BTC) and Ethereum (ETH). It directly reflects the overall momentum of the altcoin market. Coinbase Premium Index: TradingView Indicator An indicator showing the price difference of BTC between Coinbase and other major exchanges (e.g., Binance). It is used to indirectly gauge institutional buying pressure (positive premium) or selling pressure (negative premium) in the U.S. market. ⚙️Interaction of Indicators and Trading Strategies These four indicators exhibit specific patterns under different market conditions. By analyzing them comprehensively, traders can identify medium- and long-term trading opportunities. Correlation between BTC price and indicators: BTC price vs BTC.D: Complex correlation. BTC price vs USDT.D: Mostly inverse correlation (USDT.D rising = market uncertainty and BTC decline) BTC price vs TOTAL3: Mostly Positive correlation (BTC rise = TOTAL3 rise) BTC price vs Coinbase Premium: Mostly Positive correlation (sustained positive premium = continued BTC uptrend) ✔️Scenario 1: Bullish Phase📈 (Bitcoin-led Rally) BTC.D rises: Capital concentrates into Bitcoin USDT.D falls: Increased risk appetite, cash inflows grow TOTAL3 moves sideways or slightly upward: Altcoins remain weak or unresponsive Coinbase Premium rises and stays positive: Institutional buying inflow Interpretation: Strong institutional buying of Bitcoin drives the market, with capital shifting from stablecoins into BTC. Altcoins may lag behind this movement initially. Strategy: If the Coinbase Premium remains positive even during minor BTC corrections, it favors building long BTC positions. When the positive premium persists and BTC breaks key resistance levels, it can be interpreted as a strong buy signal. During early stages, focus primarily on Bitcoin rather than altcoins. ✔️Scenario 2: Strong Bull Market📈 (Altcoins Join the Rally) BTC.D declines: Capital rotates from Bitcoin to altcoins USDT.D declines: Ongoing risk appetite and continuous inflows TOTAL3 rises: Peak momentum in the altcoin market Coinbase Premium remains positive: Continuous liquidity inflow Interpretation: As Bitcoin stabilizes or trends upward, capital starts flowing aggressively into altcoins. The rise in TOTAL3 reflects broad-based strength across the altcoin market. Strategy: Select fundamentally strong altcoins and build positions gradually. During this phase, large-cap and small-cap thematic groups may experience rotational pumps — monitoring related narratives is crucial. ✔️Scenario 3: Bearish Market📉 BTC.D rises: Altcoins fall more sharply as BTC declines USDT.D rises: Strengthened risk aversion and increased cash positions TOTAL3 declines: Deepening weakness in the altcoin market Coinbase Premium drops and stays negative: Institutional selling or halted buying Interpretation: Heightened market anxiety leads investors to liquidate risk assets and move into stable holdings such as USDT. Institutional selling pressure pushes the Coinbase Premium negative or maintains it in a downward trend. Altcoins are likely to experience the greatest losses in this phase. Strategy: Reduce crypto exposure or convert positions to stable assets (USDT) for risk management. During technical rebounds, consider trimming positions or cautiously taking short opportunities (with higher risk). ✔️Scenario 4: Sideways or Correction Phase BTC.D moves sideways: Range-bound consolidation USDT.D moves sideways: Persistent risk aversion and lower market volume TOTAL3 moves sideways: Altcoin market remains flat or slightly weak Coinbase Premium stable: Fluctuates between positive and negative values Interpretation: The market enters a wait-and-see phase with sideways movement or mild correction. The Coinbase Premium’s neutrality reflects uncertainty in institutional capital flows. Strategy: Monitor BTC and TOTAL3 reactions at major support levels before re-entering positions. It may be prudent to stay on the sidelines until clear institutional accumulation or positive catalysts emerge to restore sentiment. 🎯TradingView Chart Setup and Usage Tips Multi-Chart Layout: Use TradingView’s multi-chart feature to display BTCUSDT, BTC.D, USDT.D, and TOTAL3 simultaneously for comparative analysis. (Apply Coinbase Premium as an additional indicator.) Timeframes: For short-term analysis, use 1H, 4H, or 1D; for medium- to long-term, use 1W or 1M charts. Confidence increases when multiple indicators align across the same timeframe. Trendlines and Support/Resistance: Draw trendlines, support, and resistance on each indicator chart to identify key inflection points. Breakouts on USDT.D or BTC.D often signal major market shifts. Supplementary Indicators: Combine RSI, MACD, or other technical indicators to detect divergences or overbought/oversold zones for added precision. ⚡Analytical Value and Considerations Comprehensive Market Insight: Analyzing all four indicators together enhances overall market understanding. Leading vs Lagging Indicators: Coinbase Premium can serve as a leading signal, while dominance and market cap metrics act as coincident indicators reflecting current conditions. Probabilistic Nature: These indicators are not predictive tools but should be interpreted within a broader context of market variables. Risk Management: Always apply stop-loss measures and manage exposure carefully. Be prepared for deviations from expected market behavior. 🌍Conclusion Bitcoin Dominance, USDT Dominance, TOTAL3, and the Coinbase Premium Index are fundamental components in decoding the complex structure of the cryptocurrency market. Analyzing them in conjunction enables a deeper understanding of market sentiment, anticipation of upcoming opportunities and risks, and the development of a more intelligent and stable trading strategy. 💬 If you found this analysis insightful, share your thoughts in the comments! 🚀 Don’t forget to hit Boost to support the post! 🔔 Follow to make sure you don’t miss the next market insight!