In this Article, we'll cover
○ Upcoming AltSeason
○ Liquidity rotation
○ How to position yourself
○ Cycle peak targets
Now, let's begin.
➢ AltSeason needs just 2 things: Retail influx and new liquidity.
➢ Since November 6, the crypto market has experienced both these things.
➢ Tokens with the most retail presence, like $XRP, $XLM, $HBAR, and $ADA, have pumped 3x-5x.
➢ Along with that, USDT supply is hitting new highs along with stablecoin supply on exchanges.
➢ If that's not enough signal, the Coinbase app store rank has reached 11.
➢ Google searches for several alts have reached ATH, which all signals towards one thing: AltSeason
➢ But unlike other AltSeasons, this one is going to be a bit different.
➢ In 2017 and 2021, AltSeason, $BTC pumped first, and then it went sideways as whales started taking profits.
➢ Soon, those profits started to rotate into $ETH and other large caps like $ADA, $DOT, etc.
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➢ After that, the liquidity flowed into mid caps and then small caps, which pumped them 50x-100x in a few months.
➢ Now, with the spot ETF approval, it'll be difficult for alts to get liquidity from BTC.
➢ That's why alts/BTC pair volume is at a record low this cycle while alts/fiat pair volume is reaching new highs.
Is this a good or bad thing?
➢ In my opinion, this is a good thing, as new liquidity is entering into alts rather than just liquidity rotation that has happened in the past.
➢ This further indicates that Altcoins as a whole have grown a lot and are not fully dependent on BTC.
➢ Till now, liquidity has flowed into large caps while mid caps and small caps are still underperforming.
➢ This means you need to start looking into tokens <$1B MCap with a good community and growing fundamentals.
➢ Very soon, the money will rotate into these alts, given we're currently in the Utility Season.
➢ Now, the main question that arises here is how one should position oneself.
➢ In a bull run, it's very important to pick outperformers.
➢ If your token is keeping up with BTC returns, you need to rethink your strategy.
Here are some steps on finding the outperformers.
○ Forming higher highs and higher lows during BTC pullbacks
○ Breaking out of long timeframe range during BTC consolidation
○ Whales accumulation while exchange supply is depleting
○ Massive vocal community with strong hand holders
○ If you have trouble finding these alts, just follow me as I share such gems continuously.
Cycle Peak Target
○ Crypto MCap is expected to hit $9T-$10T by the cycle peak.
○ I'm expecting 35%-40% BTC dominance during peak AltSeason, which will put Altcoin MCap at $6T-$7T.
○ If that happens, several large caps will pump 3x-5x, midcaps will pump 10x-20x, and small caps will pump 50x-100x.
That's the wrap!
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