Have you heard about the altcoin season? This is the period when cryptocurrencies, except bitcoin (they are called altcoins), begin to grow in price much faster. The well-known cryptanalyst TechDev claims that this moment is already on the way. Let me explain what his predictions are based on.
Why can altcoins outperform Bitcoin?
TechDev noted several signals that previously coincided with the start of altcoin growth in 2017 and 2021. The same signals are now showing up again.:
Bitcoin's Highs and Trend Reversal
Historically, altcoins have started their growth after bitcoin reached new peaks in its cycle. Bitcoin is currently at a six-month high, indicating a possible shift in investor attention to altcoins.
The decline in the dominance of Bitcoin (BTC.D)
The dominance of bitcoin shows how much of the entire crypto market it accounts for. When this indicator drops, it indicates that altcoins are starting to attract more capital. In previous cycles, this was an important signal.
Bollinger Bands
It is a tool that helps analyze market volatility. TechDev noted that bitcoin has reached the upper level of these bands on the weekly chart. This often coincided with the beginning of the active growth of altcoins.
What is the TOTAL2 chart and why is it important?
TOTAL2 is a chart that shows the total market capitalization of all altcoins (excluding Bitcoin and stablecoins). TechDev predicts its sharp growth in the near future, based on historical data. In the past, when TOTAL2 started to grow, altcoins generated significant profits in a few months.
Why can a new altseason start now?
TechDev believes that the altseason begins approximately 1,280 days after bitcoin's previous peak. This time window is already close. In addition, when bitcoin reached certain levels on the chart in previous cycles, altcoins followed it with a noticeable acceleration. The analyst even showed an example on the chart where altcoins grew sharply within six months after such signals.
What does this mean to you?
If the forecasts are correct, altcoins may grow significantly in the coming months. This is a good opportunity for those who are willing to invest, but it is important to consider the risks.:
Not all altcoins are the same
Not all projects will grow. It is better to choose those that have a strong community, promising technologies, or real-world applications.
Plan your actions.
Set goals for yourself — for example, at what price you want to sell an asset. This will help to avoid emotional decisions.
Keep an eye on the market
If the altseason really starts, it may be short. Be ready to react quickly.
TechDev claims that the market is now in a phase where altcoins can significantly outperform bitcoin in terms of growth. The key signals that appeared in 2017 and 2021 are being repeated again. But remember: cryptocurrencies are a highly volatile market, and success requires careful analysis and risk tolerance.
Do you think it's worth looking at altcoins already? Or is it better to wait for the clear start of the season?
