WHAT IS AN ALTSEASON AND HOW TO SPOT THEM?
You've probably heard this term before, but you may not fully understand it. Read carefully and pay attention, as it's a very important concept in crypto.
An altseason is an "altcoin season": essentially, it's a period during which altcoins will skyrocket and outperform BTC by a significant margin. During an altseason, it's highly advisable to hold altcoins in your portfolio. But most importantly, it's preferable to hold altcoins that haven't exploded yet: they will have a much greater potential for growth than $SHIB , $SOL , or others.
How does an altseason work in practice?
Altseasons occur when Bitcoin isn't moving much and has low volatility. During these periods, investor capital will flow more into altcoins because there will be less interest in Bitcoin: remember that the market is stupid and impatient, so people prefer to go where there's movement rather than where they need to wait. As a result, a significant amount of money flows into the altcoin market capitalization, drastically increasing the value of almost all altcoins.
To observe this phenomenon, you need to look at Bitcoin Dominance (BTC.D on TradingView): this chart shows you the share that Bitcoin takes in the total market capitalization of the crypto market. The lower it goes, the better altcoins will perform against Bitcoin, and vice versa.
From experience, altseasons last for about 3 weeks, and there are several during a bull market. So, your goal is to position yourself on altcoins before these altseasons by trying to predict them using Bitcoin Dominance.
This post represents my personal views.
Thank you for reading.
If you liked it, don't hesitate to like, comment, share this post, and especially subscribe, it helps me a lot. You can also tip me to support me financially, it's the only way to be rewarded for teaching you as much as possible about the crypto market. Thank you very much to those who do.