If you were to invest in cryptocurrencies, you must know two words - the Altcoin Season.
So, what is the altcoin season? Why are so many investors expecting it to come? How to make a profit from the altcoin season?
All are mentioned in this article.
Altcoin season or Altcoin season refers to the time when altcoins simultaneously increased sharply with the profit of x2, x3 or even x10 times in a few weeks.
The most typical is the altcoin season in September 09, when you closed your eyes to buy an altcoin any of your assets increased very quickly after that.
After many times of observing the Bitcoin season, I have concluded that there are two prerequisites to help you realize whether the Altcoin season has come or not, namely:
Bitcoin Dominance is also known as Bitcoin's dominance rate in the cryptocurrency market.
As the rate of increase increases, indicating that investors are tending to hold Bitcoin rather than Altcoins, Altcoins will tend to decrease because investors sell Altcoin to BTC.
When this ratio tends to decrease, there are two cases:
Therefore, the reduced Bitcoin Dominance rate is considered a necessary condition for an altcoin season.
According to my observations, there will be three scenarios of capital movement in the cryptocurrency market. Including:
Scenario 01: BTC> Altcoin Top> Mid-cap / LowCap (most often).
Scenario 02: Midcap / Lowcap> Altcoin Top> BTC.
Scenario 03: This is the best and most ideal scenario, only occurs when a large amount of capital flows into the market.
Summary: You need to observe the BTC Dominance and the scenario of capital flows running in the market to be able to catch the Altcoin wave season.
For example: Altcoin season in January to February 01.
After the price of BTC increased from $ 7,200 to $ 8,150 and BTC Dominance soared to 70,52% after that, it started a downward trend despite a slight increase.
This is the first step that signals the Altcoin season. Soon after, the BTC pump attracted the attention of investors. During this period, BTC increased but ALT / BTC did not drop sharply, causing the price of ALT / USDT to increase slightly according to BTC.
In the next phase (from January 25, 01 to February 2020, 14), capital inflows started pouring into Altcoin TOP and Midcap and lowcap, causing the prices of these altcoins to increase very strongly by 02% -2020%.
Meanwhile, the price of Bitcoin only increased slightly by 25%.
After that, the BTC collapsed and the Altcoins collapsed. End of the season Altcoin.
Altcoin increase: (e.g. XTZ)
Bitcoin increased slightly:
When the brothers have identified the signs that the Altcoin season is about to begin. You need to do the following:
If you find these things too complicated, join now Coin98 Trading Desk to discuss effective altcoin investment strategies.
The altcoin season has always been the happiest, most exciting period of the cryptocurrency market with pump x2 x3 x10 times assets.
But one person's joy will be the sadness of another when they are RING just because you don't understand the nature of the altcoin season.
So, if you read this article, please share it with many other brothers so they know how to play and become the winner!
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