As Bitcoin aims for $100,000, investors are closely watching whether the long-awaited altcoin season is about to arrive. In this context, several established public chains, meme coins, and metaverse concept coins surged dramatically starting last weekend, attracting investor attention.
The chart below shows the performance of the top 100 tokens in the past 24 hours, highlighting that SAND (which surged over 100% in the past two days) and MANA, two established metaverse concept coins, have seen remarkable gains recently.
Performance of various sectors over the past week
According to Artemis data, in the past seven days in the blockchain sector:
The average increase can reach as high as 36.4%, with Data Availability (Celestia, Dymension, although there are fewer tokens in this category).
The second place is Gaming with 25.4% (SAND, AXS, MANA…)
The third place is 22.1% for established public chains (ADA, VeChain, IOTA…)
Next, everyone needs to understand what altcoin season is in the cryptocurrency world.
Altcoin season is a phenomenon in the crypto space known for generating crazy profits. This phenomenon occurs with all cryptocurrencies other than Bitcoin, which are altcoins. So think of your Solana, your BNB, your SUI, etc.
When altcoin season arrives, all these tokens start to outperform Bitcoin across various metrics, and their prices soar. Some tokens double in price within a few hours, while others reach a 1000% increase in less than a week.
But all good things must come to an end. This is why altcoin season is usually closely followed by a significant sell-off, marking the peak of the bull market cycle. We will see interruptions in the upward trend, and prices may plummet due to massive whale sell-off pressure.
When altcoin season occurs during a bear market, it is often referred to as a relief rally and tends to be short-lived. Selling begins when tokens reach their high time frame (HTF) resistance levels. In the high time frame, each candle represents a day, a week, or a month. This is often referred to as a trap bull, a favorite term of Capo in the crypto space.
Recently, there have been significant changes in the cryptocurrency market. This is because there are now millions of crypto projects in operation, which means that when funds flow into the market, there are many projects to choose from. This may lead to diluted returns in the upcoming altcoin season in 2025, leaving many token holders disappointed. The flow of funds is usually depicted as shown below.
For example, at the beginning of 2022:
In simple terms, every time these altcoins gain momentum relative to Bitcoin, it is altcoin season.
Every time Bitcoin gains momentum, it is Bitcoin season.
The best time to buy altcoins is when they form long-term lows relative to Bitcoin, just like they are doing now. Conversely, the best time to sell altcoins is when they peak.
Historically speaking, the period when BTC.D falls below 50% and further declines to 40% may be the best time to capture the explosive growth of altcoins. Currently, BTC.D has recently adjusted from over 60% to the current 59.37%, but it is still quite a distance from 50%, and this year BTC.D has not fallen below 50% at all.
Please remember, no one can predict the market's top/bottom.
Every market correction you see fear, I see opportunity. You research what to buy every day, I research how to maximize funding efficiency every day. First learn the first step, overcome fear.
