I always believe that altcoins exist in a unique market stage called the hot season. So what exactly is the hot season?
1. Characteristics of the hot season (I) Not all altcoins will rise sharply
In the hot season of altcoins, not all altcoins will rise sharply. Market funds often flow into some currencies selectively, and the performance of different altcoins varies greatly. Some may rise significantly, while others are basically silent.
(II) Rotational explosion of sectors
Usually only 1 to 3 sectors will have a rotational explosion. For example, the related altcoins of sector A will rise sharply first, and then the heat will shift to sector B, and then sector C, etc. Each sector will become the focus of market attention in turn, driving the price of the altcoins to which they belong to rise rapidly, while other sectors that are not in rotation are relatively flat. 2. The increase of hot coins
In each wave of secondary hot seasons, the increase of altcoins that become hot spots will generally be about 3 to 5 times. This increase range also reflects the large profit margin of hot altcoins at a specific stage, attracting many investors to explore and participate in it during the hot season.
3. Relationship with Bitcoin Trends
The period of Bitcoin volatility is precisely the best opportunity for hot altcoins to perform. Because when Bitcoin is in a volatile state, some funds in the market will flow out of Bitcoin to find other investment targets with greater potential and profit opportunities. At this time, hot altcoins are easy to be favored by funds, thus starting a rising market. Moreover, in the hot season, it is normal for altcoins to rise and fall, and price fluctuations are relatively frequent, requiring investors to have a certain risk tolerance and ability to cope with fluctuations.
4. Sector outbreak rules
In addition, from the perspective of the rules of sector outbreaks, those sectors that are generally optimistic about the outbreak will often be delayed. It may be due to the high market expectations in the early stage, and funds are waiting for the right time to enter, which makes the start time postponed. And those sectors that people don’t pay much attention to often break out in advance, unexpectedly become market hotspots, and let the first layout reap surprises.