Over the years, one of the most common things I’ve noticed among traders especially newer (newbie) for crypto is the frustration that comes with market downturns. When prices dip, traders lose hope, and many question everything they've learned. Recently, someone commented on my last post, "Altseason is a lie." So, is it really a lie, or is there something deeper happening in the market?
Let’s break down what’s actually going on, using what I’ve learned over the past 5+ years of trading and what I’ve observed in the market, as well as the questions I get from my followers and students.
I’m not just another random technical analyst throwing guesses I’ve spent over 5 years mastering this craft, and experience has been my best teacher. Some laughed at my last update, but those who took it seriously saw the results play out just as I predicted.
I know if this post reaches 10,000 people, only 1% will hit the follow button because they’re serious about learning and don’t want to miss updates like this. If you’re in that 1%, follow & stay tuned I’ll break down altcoin current situation and its possible next move.
If this update helps you in any way or gives you a new perspective, do me a small favor like, repost, or leave a comment! Your support keeps me motivated to share these valuable insights. 🙌
2021 vs 2024 Altseason
In the world of crypto, you hear this word history often repeats itself and that’s not just a random coincidence. It’s the natural flow of market cycles. If you think back to 2021, we saw something really interesting about 34 weeks after the Bitcoin halving, BTC dominance started to drop, and altcoins began to surge. This was the start of altseason a time when altcoins began outperforming Bitcoin.
Now, let’s fast forward to 2024. same thing in now 34 weeks after the Bitcoin halving, BTC dominance started to drop What’s happening right now? The exact same pattern. yellow lines halving date, green line 34 weeks after halving.
But now the intresting part is If you zoom in on the 1D BTC dominance chart, you’ll see that BTC dominance is starting to pump once again after the 34 weeks. In fact, it could rise another 5-7% before we see the real altseason begin same things happend in 2021.
This tells me that we could be on the brink of something exciting a possible altcoin season. But if that’s the case,
Why are we seeing altcoins bleed right now?
The Real Answer: BTC Dominance Isn’t the Whole Story!
When we see altcoins dropping, it’s easy to jump to the conclusion that BTC dominance is the main factor. And yes, BTC dominance does play a role, but there’s more to it. The true cause lies in market manipulation, particularly by whales and market makers. These entities control a lot of the market, and they use a tactic that can really confuse everyday traders. Let me explain in simple terms.
So now you maybe ask Who Are Whales and Market Makers?
Whales: These are individuals or groups who hold large amounts of a particular cryptocurrency. They have enough capital to significantly impact the market when they buy or sell.
Market Makers: These are entities or institutions that provide liquidity to the market. They make profits by manipulating the price movements and controlling the market flow.
Now, when we see altcoins bleeding, it’s often because whales and market makers are trying to wipe out the weak hands—the traders who are over-leveraged or inexperienced. They do this by creating artificial sell-offs that force traders to panic and sell their positions at a loss.
How Do Whales Manipulate the Market?
Let’s walk through it step by step so you can really understand the process.
1. Manipulating BTC Dominance
When BTC dominance starts to rise, altcoins usually start to lose value. But here's where the manipulation comes into play: whales and market makers know that many traders are watching BTC dominance closely. When they see BTC dominance start to rise, it triggers panic among altcoin traders. They start thinking that altseason is over and begin selling off their positions.
2. The Whales Set Up Their Trap
At this point, whales begin to dump the market. They sell off large amounts of BTC or altcoins, which causes prices to drop rapidly. This creates a sense of fear and uncertainty in the market. Traders, especially those with high leverage, get liquidated as their positions are wiped out. The market makers and whales make money from the liquidation fees and the price drop.
3. The "Clean-Up" Phase
After wiping out the weak hands, the whales and market makers now have cheap positions in the market. They can then pump the market once the selling pressure eases off, causing the price to rise. This often happens in a sharp rally, which can trap those who sold their positions in panic, forcing them to buy back at higher prices.
The Truth About Altseason
So, let’s get back to the main question or the follower comment: Is altseason a lie?
No, it’s not. But it might feel like a lie if you’re caught in one of these market cycles where whales manipulate the prices. Just because altcoins are bleeding now doesn’t mean altseason is over. In fact, this bleed is often the prelude to a massive rally in altcoins.
As I’ve seen in the past, once BTC dominance stabilizes and starts to drop, the altcoins tend to take the lead. We’re not far from that point in 2024, and I believe we’re about to enter altseason after BTC dominance rises a little more. This is why it’s so important to be patient and stick to your strategy, even when things seem uncertain.
As always, the key to success in trading is understanding the market and staying patient. Don’t let short-term fluctuations or market manipulation shake your confidence. Stick to your strategy, trust the process, and get ready for the altcoin rally that’s coming soon!
What are your thoughts on altseason? Are you ready to take advantage of the upcoming opportunities? Let me know in the comments below!
