Altcoin Season is Coming: Dealing with Bitcoin (BTC) Dominance Post-Halving
As crypto markets anticipate the aftermath of the fourth Bitcoin halving, market dynamics are shifting significantly, which could set the stage for an altcoin surge (aka altcoin season)!
Optimism is growing for altcoins to surge as most altcoins begin to outperform Bitcoin. This shift comes as many investors and traders look to altcoins that have shown resilience in recent months and have low supply overhead.
Assets such as APT and W are seen as potential leaders of this rally due to their current positioning despite previous declines.
Market Phases
Outlines a range of market phases that may occur, affecting trader behavior and market liquidity:
Slow Dump – This phase can cause boredom among traders, leading to a drop in market activity. Instant Dump – Late entrants may be liquidated, and this phase can lead to a rapid price drop. Slow Accumulation – Characterized by a gradual absorption by the market, often frustrating impatient traders who may exit the market. Big Pump – Expect to reward those with a logical and patient investment strategy.
According to CoinMarketCap, these phases reflect natural market cycles and tend to weed out inexperienced traders before any significant upward momentum emerges. Additional Insight – Emperor warns traders against using high leverage in breakout trading, suggesting it may not be effective in the current market environment. “I don’t think breakout trading works in crypto right now,” he explained, suggesting that a more cautious approach may be warranted as the market stabilizes post-halving.
The insights offer valuable perspective for those navigating the complexities of cryptocurrency investing. While Bitcoin’s dominance suggests potential stability, the altcoin market may be gearing up for major activity, presenting opportunities for discerning investors.
