To start with, a rise in the BTC dominance rate essentially means the number one cryptocurrency is more in demand compared to the alternative cryptocurrencies.
The above chart shows:
The BTC dominance rate has increased from 40.5 percent to 46 percent in the last four weeks.
In the latter case, the dominance rate of alternative cryptocurrencies over bitcoin rises sharply.
So, a sharp rise in the BTC dominance rate, as seen in the last four weeks, could be considered a sign of investor confidence in the current BTC price rally.
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A spike in the BTC dominance rate validates the short-term bullish outlook.

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