What is the altcoin season? Signs recognize the upcoming Altcoin season

By Le Anh | Invest

What is the altcoin season

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.

Signs recognize the upcoming Altcoin season?

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:

  1. Bitcoin Dominance must be REDUCED.
  2. Cash flow must shift to Altcoin.
Bitcoin Dominance Decreased

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:

  • Investors tend to sell BTC to USD or USDT.
  • Investors tend to sell BTC to invest, buy into Altcoin.

Therefore, the reduced Bitcoin Dominance rate is considered a necessary condition for an altcoin season.

Cash flow shifted to Altcoin

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).

  • Cash flow is pouring in to push Bitcoin price up. At this point, holders of usd / usdt have begun to participate in buying BTC, pushing up the price of BTC.
  • After that, BTC leveled off sideways or tended to decrease slightly (adjusted), which was flowing from BTC to the top altcoin (large Cap), causing the price of these tokens to increase by 30-50%.
  • After all, capital will be poured into the mid and lowcap coins. While these altcoins are pumped, BTC will be pumped or dumped sharply, causing the sell-off to occur and also a way to end the cycle, making many brothers reluctant holders.

Scenario 02: Midcap / Lowcap> Altcoin Top> BTC.

  • Bitcoin will be almost flat and volatile. At this time, the capital was pushed into the midcap and lowcap altcoins with very powerful pump, x2 x3 within 1-2 weeks.
  • At this time, investors began to see fomo pour money from usdt to buy pumped altcoins.
  • Unfortunately, the capital flow will then flow back to the top altcoins and eventually flow back to BTC, causing the BTC pump to be strong and then the sale will end the cycle of capital.

Scenario 03: This is the best and most ideal scenario, only occurs when a large amount of capital flows into the market.

  • At this time, if you close your eyes and buy big things, you will also have a profit because the capital is too big and will flow to every corner of the market. From BTC to Altcoin and lowcap will pump very very strongly.

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:


What to do to increase assets fastest in Altcoin season?

When the brothers have identified the signs that the Altcoin season is about to begin. You need to do the following:

  • Determine the stage of capital flows in which scenario and stage.
  • Review the coins that capital will flow into.
  • Analyze the chart and choose 1-2 VND to buy.
  • Transaction planning: Entry, exit, loss-making, capital management, risk management, expectation management ... and conducting transactions as planned.
  • After reaching the target, Flip through un-pumped altcoins to take advantage of the compound interest.

If you find these things too complicated, join now Coin98 Trading Desk to discuss effective altcoin investment strategies.

Epilogue

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!

Leave a Reply

avatar
Subscribe
Notify of