I agree with your statement, although I believe that the act of buying and selling by traders is a personal matter, but universally it brings harmful results. However, since there is freedom in the field of trading, traders should analyze other effective metrics for market analysis, such as on-chain data, fundamental analysis, trading volume, liquidity, and others, in addition to Bitcoin dominance, to make informed decisions.
If a person knows much about BTC, he wouldn't trade with it, imo. Much more potential is just in hodling it. Nothing wrong with trying things differently, but it usually holds more risks and doesn't have that much stability behind it. And we are talking about BTC here.