Don't worry, the big market is divided into two phases, and the madness of altcoin season is about to arrive!
In every bull market, the big market is often divided into two phases. The first phase is usually dominated by mainstream coins like Bitcoin and Ethereum, while the second phase is the time for altcoin frenzy, known as the 'altcoin season'!
1. Why is it said that altcoin season is approaching?
• Capital rotation pattern: After the mainstream coins complete the first wave of explosion, market funds will gradually shift towards altcoins with lower market capitalization and higher growth potential.
• High elasticity of altcoins: Compared to mainstream coins, altcoins have larger price fluctuations, often resulting in several times or even ten times increases in the latter half of a bull market.
• Market sentiment boost: When the growth of mainstream coins slows down, investors are more inclined to look for opportunities for 'next station surge', making altcoins the first choice.
2. Signals of the current phase
• Phase adjustment of mainstream coins: The upward momentum of Bitcoin and Ethereum has weakened, and market volatility is stabilizing, indicating that funds may start to flow elsewhere.
• Active performance of low market cap coins: Some popular altcoins (like DeFi, GameFi, L2 projects) have already started to take off, with noticeable inflows of capital.
3. How to seize the opportunities of altcoin season?
• Focus on sector rotation: Pay close attention to quality projects in hot tracks (like AI, Web3, NFT, DeFi).
• Diversified layout: Allocate small positions to potential altcoins while setting profit targets to reduce risk.
• Follow the flow of funds: Closely monitor trading volume and market hotspots to capture strong coins.
Summary:
The second phase of the market is the main stage for altcoins, and the madness of altcoin season is brewing. Preparing in advance for high-potential projects and patiently waiting for the explosion may be the best opportunity for achieving high returns!
