A chart tells you when the altcoin season will explode! What trading opportunities are left for retail investors?
My understanding of the altcoin season is simple:
1. First, break through the price high of March last year.
2. Then break through the historical high of 2021.
3. ETH breaks through 4800
4. SOL breaks through 400
Otherwise, there won't be a real altcoin season.
Funds flow into BTC ➩ BTC dominance increases ➩ Altcoins are drained ➩ Altcoins fall
Funds flow out of BTC ➩ BTC dominance decreases ➩ Altcoins absorb funds ➩ Surge
🤖 This might be an opportunity, how to choose the target?
- As long as the project is still operating, with an active codebase, social media updates, and admins on TG and Discord, there's a high chance institutions have already intervened to control the market.
- With suitable profit and loss, when the time is right, it can give you three to five times in seven days or even one day, and within a month, it can erupt with the momentum accumulated over three to four years. The altcoin season can complete the two-year bull market process of Bitcoin in seven days.
🤖 From an emotional perspective, it is still a bear market sentiment.
All the groups are dead silent. The only wish in the hearts of group members is to break even. Although Bitcoin's price continues to hit new highs, the assets in the wallets of group members are constantly shrinking.
Those truly at the end of a bull market have long lost their rationality. They not only invest all their savings into the market but also borrow money from friends and family, taking loans to go all-in, rushing in regardless of anything. Bitcoin buyers envy those who buy altcoins, and in such a frenzied atmosphere, as soon as they sell their coins, they immediately miss out and never have the chance to buy back at the sold price. The market makers use various news and pumping tactics to create this atmosphere, clearly not in a bull market end state.
🤖 How to judge the altcoin season, 4 indicators you must know
1️⃣ Altcoin Index
Tracking market sentiment to see if it points to Bitcoin or altcoins. If 75% of the top 50 altcoins outperform Bitcoin in the past 90 days, it's an altcoin season; otherwise, it's a Bitcoin season.
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2️⃣ BTC Dominance (Market Cap Share)
Funds flow into BTC ➩ BTC dominance increases ➩ Altcoins are drained ➩ Altcoins fall
Funds flow out of BTC ➩ BTC dominance decreases ➩ Altcoins absorb funds ➩ Surge
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3️⃣ TOTAL 2
TOTAL2 represents the total market cap of the top 125 altcoins excluding BTC, showing the funds flowing into altcoins.
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4️⃣ ETH/BTC Exchange Rate
From a market cycle perspective, the flow of funds is generally:
BTC—ETH/SOL—Mainstream Altcoins—Secondary Mainstream Altcoins—Meme
Bitcoin is the belief, Ethereum is the leader, and a strong Ethereum is a prerequisite for altcoin surges. When the Ethereum exchange rate strengthens, it's appropriate to pay attention to altcoins.
The biggest fear in a bull market is: greed, fear, blindness, herd mentality, going with the flow, chasing highs and selling lows, because it's a place where only a few make money.
This round of altcoin season only belongs to some quality representatives and won't explode comprehensively like in 2021. It is recommended to select from the top 50 by market cap.
If you're afraid of missing the altcoin season, the only thing you can do is find a cost-effective entry point and set a stop loss. Whether it can break the historical high again depends a lot on luck.
What other trading opportunities do we have👇👇
#BTCUSD #ETH
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