 What is going on with Ethereum and the rest of the outcoin market over the last week or so? Bitcoin has been soaring. But when we take a look at Ethereum, which almost always follows Bitcoin, it's been kind of stagnant. And if you look at the rest of the market over the last week, Bitcoin has pretty much been outperforming and just dominating the market overall. So let's dive in and find out exactly what is going on. So so far this month, Ethereum is up over 16%, not bad, right? But then you take a look at Bitcoin, which is up over 30% on the month. So now it's like, wait a minute, what exactly is going on? Because usually Ethereum outperforms Bitcoin, whether it's to the upside or to the downside. So let's go ahead and take a look at a post that I did back in December of 2020. Understanding the full Bitcoin dominance cycle. So right here, you have BTC.D, which stands for Bitcoin dominance. BTC stands for Bitcoin's price and out mean outcoin prices. So when the Bitcoin dominance increases and the Bitcoin price increases, then usually it leads to outcoin market decreasing in price. So why does that happen? Well, if the Bitcoin dominance is increasing, that means that money is flowing into Bitcoin more than anything else. This is usually how most rallies begin because money flows out of the outcoins into Bitcoin as Bitcoin's price continues to increase. And then that makes Bitcoin's dominance also increase. Pretty much called FOMO. People are FOMOing out of outcoins into Bitcoin because the outcoins are not moving. So now how about if the Bitcoin dominance increases, but the Bitcoin price decreases, well, then that leads to an outcoin dump. That's usually when people are selling their outcoins for Bitcoin, even though Bitcoin is also going down. Remember that Bitcoin's volatility, although it is volatile, it is less volatile than the outcoin market. Therefore, when people want to kind of be a little bit more conservative with their funds, they go into Bitcoin. So if Bitcoin's dominance is increasing, even though the Bitcoin price is decreasing, outcoin prices are going to decrease even faster. So now that we have that understanding, let's go ahead and take a look at the chart of the Bitcoin dominance. So you'll see that this month, the Bitcoin dominance is up over 8%, almost at the 9% level right now, which currently sits around that 46%. So what exactly does that mean? Bitcoin dominance means it's dominant over the entire crypto market. So if it's at 46, it means that 46% of the money in the entire crypto market is in Bitcoin. If you look back into the early days of Bitcoin, you'll see that it was sitting basically at around 100% for a lot of the time until 2017 when the ICO boom happened. You'll notice that in January of 2018, when Bitcoin's price finally crashed, it hit the lows of its Bitcoin dominance, which was around that 35% area. You'll see that during this rally, it's been heading down all of 2021, and that we hit a low of 39%. So because of this drop-off, this is what's led to Ethereum's price basically skyrocketing over the last 10 months or so, and many of your favorite outcoins as well. So there's usually four phases during a rally to the upside. Phase one, which is called the initial drive, usually consists of Bitcoin moving first. And as you can see, that outcoins delayed. So that would be the phase that we're currently in right now. Once we enter into phase two, you'll see that Bitcoin kind of cools off and starts consolidating within a range like you see here. Once that happens, then the outcoins begin to catch up. So start selling Bitcoin and moving their money into the outcoin market. That's when outcoins start to take off, and note that this is the major outcoins first. Major outcoins usually move before other outcoins. That's why we always analyze Ethereum because it is the king of all outcoins. While Bitcoin is the king of the crypto space, Ethereum is the king of the outcoins. So that then leads us into phase three. Now in this phase, Bitcoin continues to trade within a range. At this point, the major outcoins have already also rallied and caught up to the movements of Bitcoin, and they also begin to range and consolidate. So at that point, then the money starts to flow from Bitcoin, from major outcoins, and now into lower cap outcoins. So this is when you start seeing things like Dogecoin, back when it was a smaller cap coin, Chiba Inu, SafeMoon, a lot of these smaller cap outcoins that began to make these huge movements. That all happened in the phase three of the cycle last time. So phase four is usually either a continuation for Bitcoin and the rest of the crypto market, or it could be a trap and a drop a drop off. So we also saw this in the last one. We had instances where Bitcoin continued to the upside, and then of course at the end of instance when Bitcoin dropped off. So you can look at this here where Bitcoin's price took off, consolidated, and then continued to the upside, consolidated, continued to the upside, consolidated, continued up, consolidated. Did a fake out here. This was the bull trap and the dump off here. So we were able to see both the bullish scenarios and the bearish scenarios where the entire market could basically drop. So hopefully you guys enjoyed this video. If you did, make sure to smash that like button. If you guys are new to the channel, don't forget to subscribe to the channel and turn on notifications. And if you have any questions about anything, as always, drop it in the comments. I'll see you guys on our next one. Peace and love.