Why is the Market Red? When Will Alts Pump? đ€·đ»ââïž
The marketâs sluggish right now, but whatâs really going on? Letâs start with USDT dominance. When USDT dominance rises, money moves into stablecoins, slowing the market. When it drops, capital shifts back into crypto, and altcoins get the lift they need.
Now, letâs break down Bitcoin dominance with the cycle:
1. BTC Dominance Up + BTC Price Up: Bitcoin takes the lead, and altcoins either stagnate or fall.
2. BTC Dominance Down + Altcoins Up: Altcoins pump as money flows out of Bitcoin.
3. BTC Dominance Stable + BTC Price Stable: A period of consolidation where the market holds steady.
4. BTC Dominance Down + Altcoins Up: The phase that signals alt season, where altcoins outperform Bitcoin.
Currently, USDT dominance is at a key resistance point. If it fails to break through and starts dropping, altcoins will likely see a surge. Weâre in a correction phase now, but thatâs a typical part of the cycle.
What is Alt Season?
Alt season refers to a period when altcoins significantly outperform Bitcoin. During this phase, capital flows out of Bitcoin and into smaller coins. Altcoins see massive gains as investors diversify and take profits from Bitcoinâs dominance.
Why do I think alt season is coming soon? As USDT dominance starts to drop, money will flow back into the crypto market. With Bitcoin consolidating and altcoins gaining momentum, weâre poised for a shift into alt season. Patience and smart buys during these consolidation phases could pay off big when altcoins finally take the lead. Keep an eye on the signs, and donât miss the ride!
