Recently, I've heard an absurd claim that as long as Bitcoin maintains its consolidation and Ethereum surges significantly, it means the altcoin season has begun. I really have to say, the person making this statement simply doesn’t understand the subject and might easily mislead others.

Everyone must be clear that the only sign of the altcoin season starting is Bitcoin continuing to surge rapidly; it is the one and only key signal. This must be remembered. Many people have a partial understanding of the true state of the bull market in 2021, relying solely on hearsay to piece together their knowledge.

Some believe that after Bitcoin consolidates and Ethereum surges, the altcoin season follows. However, they don’t realize that prior to this, Bitcoin had surged crazily for 15 consecutive days, with a series of large candlesticks continuously creating wealth myths, dominating the front pages of major media for many days in a row.

At this time, institutions seize the opportunity to enter and exert force, continuously creating the wealth effect, attracting outside funds and various institutions to rush into the Bitcoin market. Soon after, institutions begin to offload in large quantities, allowing outside retail investors to take over. In the end, the incoming funds simply cannot digest so many shares, and the supply-demand balance is suddenly broken, causing Bitcoin to plummet instantly, with panic spreading rapidly. Outside funds are all trapped at high levels, suffering substantial losses and eager to recover their investments.

At this critical juncture, institutions smoothly shift their capital to altcoins, and those retail investors who are trapped at high levels of Bitcoin hastily cut their losses and rush into the altcoin market hoping to recover their investments.

The influx of funds into the altcoin market increases suddenly, with smaller market caps making it easy to pump, which is how we see altcoins with hundreds of times potential and billions in market value. This is the key outline of the situation, the most important point.

Therefore, the premise for the altcoin season to begin is Bitcoin continuously and recklessly surging; it is definitely not what some people think, that the altcoin season arrives just because Ethereum surges.