The real signal that the altcoin season is coming, do you really understand it?

In the cryptocurrency circle, most people have fallen into a misunderstanding. They firmly believe that the crazy rise of ETH is a sign that the altcoin season is coming, but that is not the case. The only true signal that opens the altcoin season is the continuous and significant rise of Bitcoin, and this is crucial and unique!

Many people have only a vague understanding of the real situation during the bull market of 2021, having only heard some hearsay. Some thought that after Bitcoin consolidated, the price of Ethereum rose, and then the altcoin market began to take off. But in reality, they are completely unaware that before this, Bitcoin had experienced a crazy surge for 15 consecutive days, with large bullish candles every day, and stories of getting rich spread everywhere, dominating the front pages of major media for several days in a row.

During the surge in Bitcoin's price, institutions took advantage of the momentum, amplifying the wealth effect, attracting clueless “dumb money” from outside the circle and more institutions rushing into the Bitcoin market. Later, institutions quietly sold off, causing retail investors from outside the circle to buy at high prices. As Bitcoin's price continued to rise, it gradually became difficult for external funds to absorb such a large selling pressure, leading to a serious imbalance between supply and demand, and Bitcoin's price plummeted instantly. Panic spread rapidly, and outside investors were firmly trapped at high levels, suffering heavy losses and eagerly yearning to break even.

At this moment, institutions cleverly shifted their funds to the altcoin market, while those retail investors who were trapped at the high in Bitcoin hurriedly cut their losses and turned to the altcoin market in hopes of recovering their losses. Due to the relatively increased capital in the altcoin market, and its smaller market caps, it became relatively easy to pump, resulting in those altcoins with a market cap of several billion achieving hundredfold increases.

Therefore, the key premise for the start of the altcoin season is Bitcoin's continued strong surge, and it is certainly not the case that Ethereum's rise means that the altcoin season has arrived.

By the way, Dao Ge is quite optimistic about Musk's Dog PP recently, which currently has a low market cap, but the community power is strong, estimating at least another 10 to 20 times growth potential. Friends who have mastered this knowledge might as well pay more attention.