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What is Altcoin season in Crypto? Top strategies to buy Altcoins during Altcoin Season
With Bitcoin’s price climbing to $100,000, questions about the altcoin season begin to rise. There are questions about the right coins to purchase in this bull run, the best calls and strategies, but one critical question on the mind of crypto analysts and enthusiasts is; Is Altcoin Season Approaching with BTC Approaching an All-Time High?
The cryptocurrency market has been on fire ever since Trump emerged as the president of the US, and Bitcoin climbed up from where we knew it to a massive $100,000. History shows that once Bitcoin gets to its peak, a shift occurs. The market momentum spurs the shift and investors start looking for higher ROI’s. This scenario that happens post-bullrun is where they begin to diversify into other coins thus creating a period that we’ve come to know as “Altcoin season”.
Altcoin Season in Crypto: What Does it Mean?
The Altcoin Season is a market cycle that is preceded by Bitcoin dominance and happens often after Bitcoin reaches its peak. During this market cycle, tokens other than Bitcoin begin to experience price increases. When the Altcoins in crypto start to experience this increase that outpaces Bitcoin in percentage gains, investors and traders begin to shift their focus.
According to Bake, it is the ultimate high-hype period of the Bullrun that is usually observed by the market share of alternative cryptocurrencies.
Analysts and enthusiasts tend to have Altcoin season forecasts and concerning history, the characteristics of Altcoin season revolve around the decline of Bitcoin dominance, increased speculation from investors and traders, and a higher performance (outperforming) when compared with Bitcoin.
Recently, SOL experienced a 17% increase over the last weekend, surpassing Ethereum and Bitcoin. Other coins are also moving into the market.
How to Identify The Beginning of Altcoin Season
Understanding the altcoin season is crucial for traders and investors and for traders who missed out on Bitcoin, it can be their chance to maximise their profit from other coins. The altcoin season does not just sneak up, it follows a pattern that makes it easy for analysts to pick up clues. Here are some key things to watch out for:
1. Bitcoin dominance declines
Bitcoin is known to dominate the market primarily during bull runs and one of the ways to know if we are close to the beginning of an altcoin season is to check the the dominance index of Bitcoin. As at 8th September, it was at 56.92% and usually the altcoin starts once the line gets to 75%. Currently, it is at 60.79% which means we are still far from the beginning of the altcoin season.
The decline in dominance -around 50%- often indicates that investors and traders are moving their funds into altcoins. To help you track Bitcoin’s dominance index, use tools like CoinMarketCap or TradingView.
2. Strong altcoin performance
When Bitcoin dominance drops, it is usually a pointer to the fact that altcoins are gaining traction from investors. To know the performance of altcoins, you need to make use of the altcoin dominance chart which measures its market capitalization with respect to Bitcoin.
Image Source: Blockchaincenter
The altcoin season index analyzes the performance of the top 50 cryptocurrencies against Bitcoin over a 90-day window. At the time of writing, the index shows that we are still in Bitcoin season and the analytics is a way to gauge the momentum of the altcoin market.
3. Rising market sentiment
Shift in sentiment from Bitcoin to altcoin is another way to identify the beginning of the altcoin season. The chatter and speculations about altcoins from media hype and investors can be a way to identify the altcoin season. Investors and traders can make use of tools like LunarCrush to help them measure social engagement metrics.
4. Bitcoin reaches key resistance levels
Bitcoin’s climb usually gets to a point where it begins to stall. Historically, altcoin seasons come after Bitcoin reaches its all-time high or stall at a resistance point. When this happens, traders and investors know to begin looking for opportunities in altcoins.
Top Strategies to Buy Altcoins During Altcoin Season
Investing in altcoin is a lucrative action when approached with the right strategies. Here are some of the top strategies for buying altcoins during altcoin season:
#1. Do your own research (DYOR)
Generally, it is important to do research before you invest in any business. For altcoins, ensure to carry out a fundamental analysis of the coin. Study the coin’s use case, its team, the technology used, and the market potential.
Look for altcoins that have active development teams, positive market sentiments, and strong use cases. You can make use of tools like Relative Strength Index to identify entry points and it is important to be diligent to avoid falling into scams due to improper research.
#2. Diversify your portfolio
Do not put all of your eggs in one basket. You might ask; why should I diversify my portfolio?
The reason is simple - cryptocurrency is a volatile space and that includes altcoins. Prices can swing in the blink of an eye and diversifying your portfolio reduces the risk on your end. To do so, put your capital in more than one altcoin.
#3. Monitor market trends
Nothing beats being informed on what’s happening on the market. Staying updated on market trends is another strategy to help in altcoin purchases. You can use tools like news platforms, market analysis websites, and social media to track market sentiments and be on the ready side.
By understanding market trends and keeping in touch with advancements, you’ll be able to make an informed decision on the right coin to invest in.
#4. Monitor Bitcoin dominance and stay patient
It is important for you to keep an eye on Bitcoin’s dominance as it can signal a shift to the altcoin market. If there is a decline, it means altcoins are gaining traction. Additionally, avoid impulsive buying. Most people make the mistake of buying based on short-term market movements. Do not fret - stick to your strategy and research.
#5. Set clear entry and exit points
After doing your research and creating a plan, you should define your strategy by setting the price at which you will buy an altcoin and the price at which you will take a profit or cut losses. Avoid making decisions based on emotions as the volatility of the market can cause you to lose your investment.
Is Altcoin Season Approaching with Bitcoin Reaching an All-Time High?
Bitcoin’s price has always played a role in triggering altcoin seasons. When Bitcoin gets to or surpasses its all-time high, it causes a shift in the entire ecosystem.
According to analysts and crypto enthusiasts, Bitcoin’s consistent climb proves that the altcoin season might be close. At the time of writing, Bitcoin is at $97,438 and most people believe that it will get to $100,000 (a psychological milestone) before we see a decline in the index that users in the altcoin season could.
Additionally, Miles Deutscher, a well-known crypto analyst states that the true altcoin season is still far as the index is still at 35%. Deutscher also said that the real fun occurs during the 1-2 month period above the blue line (75). The timing is not a given, but the point mark of 75% on the altcoin season index is a benchmark that must be met. Bitcoin dominance index needs to drop before we see the dawn of the new altcoin season.
Final Thoughts
In conclusion, it is important to take note of market sentiments, Bitcoin dominance decline, the altcoin season index, and Bitcoin’s resistance levels to identify the dawn of the altcoin season. You should also stay informed about regulatory changes.
To make the most altcoins during its season, do concrete research, keep your ears down for changes in trends, diversify your portfolio, and ensure to set your entry and exit point. By taking advantage of these top strategies, investors and traders can maximize the opportunities presented during the altcoin season.
The cryptocurrency market has been on fire ever since Trump emerged as the president of the US, and Bitcoin climbed up from where we knew it to a massive $100,000. History shows that once Bitcoin gets to its peak, a shift occurs. The market momentum spurs the shift and investors start looking for higher ROI’s. This scenario that happens post-bullrun is where they begin to diversify into other coins thus creating a period that we’ve come to know as “Altcoin season”.
Altcoin Season in Crypto: What Does it Mean?
The Altcoin Season is a market cycle that is preceded by Bitcoin dominance and happens often after Bitcoin reaches its peak. During this market cycle, tokens other than Bitcoin begin to experience price increases. When the Altcoins in crypto start to experience this increase that outpaces Bitcoin in percentage gains, investors and traders begin to shift their focus.
According to Bake, it is the ultimate high-hype period of the Bullrun that is usually observed by the market share of alternative cryptocurrencies.
Analysts and enthusiasts tend to have Altcoin season forecasts and concerning history, the characteristics of Altcoin season revolve around the decline of Bitcoin dominance, increased speculation from investors and traders, and a higher performance (outperforming) when compared with Bitcoin.
Recently, SOL experienced a 17% increase over the last weekend, surpassing Ethereum and Bitcoin. Other coins are also moving into the market.
How to Identify The Beginning of Altcoin Season
Understanding the altcoin season is crucial for traders and investors and for traders who missed out on Bitcoin, it can be their chance to maximise their profit from other coins. The altcoin season does not just sneak up, it follows a pattern that makes it easy for analysts to pick up clues. Here are some key things to watch out for:
1. Bitcoin dominance declines
Bitcoin is known to dominate the market primarily during bull runs and one of the ways to know if we are close to the beginning of an altcoin season is to check the the dominance index of Bitcoin. As at 8th September, it was at 56.92% and usually the altcoin starts once the line gets to 75%. Currently, it is at 60.79% which means we are still far from the beginning of the altcoin season.
The decline in dominance -around 50%- often indicates that investors and traders are moving their funds into altcoins. To help you track Bitcoin’s dominance index, use tools like CoinMarketCap or TradingView.
2. Strong altcoin performance
When Bitcoin dominance drops, it is usually a pointer to the fact that altcoins are gaining traction from investors. To know the performance of altcoins, you need to make use of the altcoin dominance chart which measures its market capitalization with respect to Bitcoin.
Image Source: Blockchaincenter
The altcoin season index analyzes the performance of the top 50 cryptocurrencies against Bitcoin over a 90-day window. At the time of writing, the index shows that we are still in Bitcoin season and the analytics is a way to gauge the momentum of the altcoin market.
3. Rising market sentiment
Shift in sentiment from Bitcoin to altcoin is another way to identify the beginning of the altcoin season. The chatter and speculations about altcoins from media hype and investors can be a way to identify the altcoin season. Investors and traders can make use of tools like LunarCrush to help them measure social engagement metrics.
4. Bitcoin reaches key resistance levels
Bitcoin’s climb usually gets to a point where it begins to stall. Historically, altcoin seasons come after Bitcoin reaches its all-time high or stall at a resistance point. When this happens, traders and investors know to begin looking for opportunities in altcoins.
Top Strategies to Buy Altcoins During Altcoin Season
Investing in altcoin is a lucrative action when approached with the right strategies. Here are some of the top strategies for buying altcoins during altcoin season:
#1. Do your own research (DYOR)
Generally, it is important to do research before you invest in any business. For altcoins, ensure to carry out a fundamental analysis of the coin. Study the coin’s use case, its team, the technology used, and the market potential.
Look for altcoins that have active development teams, positive market sentiments, and strong use cases. You can make use of tools like Relative Strength Index to identify entry points and it is important to be diligent to avoid falling into scams due to improper research.
#2. Diversify your portfolio
Do not put all of your eggs in one basket. You might ask; why should I diversify my portfolio?
The reason is simple - cryptocurrency is a volatile space and that includes altcoins. Prices can swing in the blink of an eye and diversifying your portfolio reduces the risk on your end. To do so, put your capital in more than one altcoin.
#3. Monitor market trends
Nothing beats being informed on what’s happening on the market. Staying updated on market trends is another strategy to help in altcoin purchases. You can use tools like news platforms, market analysis websites, and social media to track market sentiments and be on the ready side.
By understanding market trends and keeping in touch with advancements, you’ll be able to make an informed decision on the right coin to invest in.
#4. Monitor Bitcoin dominance and stay patient
It is important for you to keep an eye on Bitcoin’s dominance as it can signal a shift to the altcoin market. If there is a decline, it means altcoins are gaining traction. Additionally, avoid impulsive buying. Most people make the mistake of buying based on short-term market movements. Do not fret - stick to your strategy and research.
#5. Set clear entry and exit points
After doing your research and creating a plan, you should define your strategy by setting the price at which you will buy an altcoin and the price at which you will take a profit or cut losses. Avoid making decisions based on emotions as the volatility of the market can cause you to lose your investment.
Is Altcoin Season Approaching with Bitcoin Reaching an All-Time High?
Bitcoin’s price has always played a role in triggering altcoin seasons. When Bitcoin gets to or surpasses its all-time high, it causes a shift in the entire ecosystem.
According to analysts and crypto enthusiasts, Bitcoin’s consistent climb proves that the altcoin season might be close. At the time of writing, Bitcoin is at $97,438 and most people believe that it will get to $100,000 (a psychological milestone) before we see a decline in the index that users in the altcoin season could.
Additionally, Miles Deutscher, a well-known crypto analyst states that the true altcoin season is still far as the index is still at 35%. Deutscher also said that the real fun occurs during the 1-2 month period above the blue line (75). The timing is not a given, but the point mark of 75% on the altcoin season index is a benchmark that must be met. Bitcoin dominance index needs to drop before we see the dawn of the new altcoin season.
Final Thoughts
In conclusion, it is important to take note of market sentiments, Bitcoin dominance decline, the altcoin season index, and Bitcoin’s resistance levels to identify the dawn of the altcoin season. You should also stay informed about regulatory changes.
To make the most altcoins during its season, do concrete research, keep your ears down for changes in trends, diversify your portfolio, and ensure to set your entry and exit point. By taking advantage of these top strategies, investors and traders can maximize the opportunities presented during the altcoin season.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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