As all of you know, in every bull run there is ALT season. In the previous bull run 80% solid alt coins made 50X or 100X. But in this cycle it will not happen because competition is very high. Some solid projects will do 50X but most of them will go 5-10X max. But today we will share some strategies through which you can make up to 50X returns.
Today we will discuss following topics:
What is ALT season?
Tips To Detect ALT Season
Money Flow
How to identify the next pumping category?
What Is ALT Season?
In the ALT season alt coins pump more than BTC. BTC becomes stable to an extent but alts pump hard. In this period BTC Dominance decrease/fall and alternative coins dominance rises. Indicating investors' confidence/interest is shifting from bitcoin to alt coins. It's not mean that all alt coins will start pumping at the same time. Most hyped categories will blast one by one. Meme coin, Defi, Artificial Intelligence, RWA and Infrastructure are the categories that we need to keep eye on. According to mine analysis #RWA! & Infrastructure are the next one. We have already seen a bull rally in AI and meme coins, more will come but RWA and Infrastructure are the next categories that will blast. In this article I will also give the reason why I am thinking so.
Tips To Detect ALT Season
To detect alt season we can use following things:
BTC Dominance: $BTC BTC dominance falls only when money flows from Bitcoin to alt coins. That decline hint start of the ALT season. You can also add one more thing to increase accuracy that is Stable Coin dominance. If it remains stable or falls and btc dominance decreases it will give a single ALT season started.
Rapid Growth in Altcoins: Many altcoins, especially those with smaller market caps, begin to see sharp price increases, often ignited by speculation, new developments, or bullish market sentiment.
Increased Interest in Specific category: This Alt season may come in specific sectors, such as decentralized finance (DeFi), Real World Assets(RWA) , Infrastructure or layer-2 solutions. When you see volume in any specific category then understand that ALT season has started.
Money Flow
Money flow refers to the movement of capital into or out of an asset, market, or sector. It is an indicator of buying and selling pressure, which helps traders and investors assume the strength or weakness of price movements. Understanding money flow can provide ideas into market trends, investor behaviour, and potential turning points in asset prices. In crypto money flows in the form of a cycle. First Bitcoin then Big Cap Coins then Mid Cap Coins then Low Cap Coins then bitcoin then fiat. This cycle repeats every 4 years. Lets understand better through a pic.
In this pattern money flows. Let’s suppose the current wave is in large caps then most coins that will pump will belong to trending categories.
How to identify the next pumping category?
To gain maximum profits in ALT rally, you have to know about the next pumping category. Here are the best strategies to find them. It is very simple, the category in which investors, whales and institutions are putting money will pump next. For that we need to use two things:
Upcoming Event
Onchain/Investors Interest Data
Upcoming Events: When a big event is ahead money flows in the event related category. Let's suppose after one month there is GTA6 game launch. So, investors will rush into the gaming category. Reason is very simple that GTA game is the most expensive game and it got hyped and set a trend. It's a very basic funda of crypto real positive hype mean big pump. Let’s take another example. Tesla robots will be installed in every country on a specific date. Due to that news AI coins will pump. Blackrock will tokenize 100 items on that date. Due to that RWA and Interoperability infrastructure coins will pump. That is how events will impact specific category coins and you can guess from it which category coins woll pump next.
Investor Interest: That is a solid and more authentic way to check which category is going to pump next. For that you can use onchain data. Check 5 solid coins of each category on onchain either whales are buying any of them? For example If you find that whales are buying RWA coins then analyse more RWA coins. If you get confirmation then do some technical analysis and make your position in them. The other way is to search on which projects inventors are funding heavily before launch? Right now we have noticed inventors are funding Interoperability infrastructure coins. So, we can expect heavy pumps in that category in upcoming days. $AXL can prove the best performer.
That is all how you can use different ways to maximize your profits in ALTs season. If you find this article helpful then don't forget to like and follow @P4 Provider for more interesting articles.