The Altcoin Season will eventually arrive! Why does the Prince always talk about Altcoin Season?
1. From the perspective of K-line and technical indicators
Looking at this 3-day level K-line of Bitcoin dominance, 1. It has broken the upward channel that started in June 2023 and has encountered resistance at the midpoint upon retracement; 2. The MACD indicator has powerfully broken the 0 axis and is currently undergoing a significant correction.
Below is Figure 1:
This tells me from the indicators and K-line trends that Bitcoin is transitioning from boom to bust. Since it has come down, who will go up?
Looking at the chart below, support and resistance are clear at a glance. Any rise or fall will not be a straight line; there will be bumps and fluctuations in between, but it does not affect the direction it should take.
Below is Figure 2:
2. From the perspective of historical patterns
Looking back at the last bull market of 20-21, Bitcoin rose from the end of September 2020 to December 2020, during which all DEFI coins were in correction, and all altcoins were basically stagnating; Bitcoin stood out, rising from 10,000 to nearly double. Meanwhile, the leading DEFI coin UNI fell from a low of 8U to just over 1U;
By February 2021, Bitcoin was nearing the peak of 60,000, while Ethereum was still hovering below 2000. You can review the K-line to see that Ethereum went from 2200 to over 4000 in just two weeks.
We must recognize one point: Bitcoin determines the overall trend of the crypto market, but! The rhythm and lifecycle of altcoins and Bitcoin are different.
3. From the perspective of sentiment
Market movements often arise in despair, rise in hesitation, and are destroyed in madness; this is human nature.
The meticulous trading methods of Wall Street have made this bull market reference much calmer compared to previous ones; they can use powerful funds and top control to make the market harder to navigate, making us feel that this time is different from every other time; however, what they cannot change is human nature, because as long as there are humans participating in trading, human nature cannot be escaped. Looking at the market's cries of despair, do you think the current market is crazy?
Holding coins is like guarding a widow; whether the market is rising, falling, or consolidating, it constantly stimulates our nerves. What we can do is choose a strategy that suits ourselves and execute it.
At this current time: holding is correct, waiting for the explosive altcoin season; withdrawing is also not wrong, as Bitcoin has already achieved 5-6 times profit.