What It Is
Intermarket analysis studies the relationships between different asset classes — stocks, bonds, commodities, currencies, and crypto — to gain a broader understanding of market conditions and potential turning points.
Key insight: Markets don't move in isolation. Bitcoin often correlates with the Nasdaq, gold moves inversely to the dollar, and bond yields affect risk appetite across all markets. Understanding these relationships gives you an edge that single-chart analysis cannot.
In crypto, the most important intermarket relationships include BTC dominance vs. altcoins, BTC vs. traditional risk assets (S&P 500, Nasdaq), BTC vs. the US Dollar Index (DXY), and the relationship between stablecoin market caps and available buying power.
Trading Application
When the dollar strengthens, risk assets including Bitcoin tend to weaken. A rising DXY is generally a headwind for crypto. Watch DXY for macro context before making large crypto positions.
When BTC dominance rises, capital flows from alts to Bitcoin. When it falls, alt season may be starting. Track BTC.D to time your allocation between Bitcoin and altcoins.
Use intermarket analysis for context, not entries. It tells you what environment you're in — risk-on or risk-off — which determines whether your technical setups are likely to work or fail.
Check DXY before making any large crypto position. Dollar strength = risk-off = crypto headwinds. Dollar weakness = risk-on = crypto tailwinds. This one correlation can keep you on the right side of the macro trend.
Continue through core concepts
Compare this reference with related structures and readings before applying it to a live chart.