In the last post, we said that we expect the growth of undervalued alts, as we expect Bitcoin to go into a wide flat pattern.

Moreover, even if Bitcoin $BTC continues to grow, alts will still grow.

Today we will explain why we think so.

1️⃣ Alt season index

At the beginning of the year, we told you about the altseason index, where we explained that this indicator is lagging.

If this index signals alt season, then it’s time to sell, not buy 👇 Example on a coin $NEAR

The reverse also applies.

Now this index is at 47, which means it’s time to accumulate alts in your portfolio.

2️⃣ Viola dominance

We have also written about this indicator many times.

Currently, the alt dominance chart is below the middle of the long-term ascending channel.

Moreover, this indicator has long been consolidated above the long-term moving averages and is locally also located inside an ascending channel from which it is time to move up.

As you can see, the volume began to grow very strongly in the last month, which indicates an active influx of liquidity into alts.

3️⃣ Bitcoin Dominance

Bitcoin's dominance is rounding down and the volume has also been growing strongly over the past month.

From which we conclude that liquidity in alts comes from Bitcoin, in addition to other sources of liquidity.

It is enough for Bitcoin's dominance to fall by at least 1% for many alts to make high profits.

And judging by the Bitcoin dominance chart, the potential for a fall of at least 6-10%.

4️⃣ Market capitalization

At the beginning of March, we published a very good article, where we provided enough facts in favor of the growth of alts 👉 Remember

Be sure to refresh your memory!

📊 Conclusion:

Judging by the dynamics, a new wave of growth of greatly undervalued alts awaits us ahead.

If you look at most alts on the weekly time frame, you will see that most alts have not yet risen and many of them are still somewhere near the bottom.

🔍 We have a very simple trading strategy.

We buy undervalued alts and sell them in parts as they grow.

We load the resulting liquidity into other alts that have not yet shown growth.

At the same time, we have a hedge in the form of 20-30% of $USDC stablecoins, so that in case of an emergency we can buy back the market.

Yes, we won’t make any money, but we are ready for any market scenario.

In one of the following posts we will explain how such a hedge can save a deposit from a strong drawdown.

And most importantly, it will save your nerves 🤫

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