Is the second round of the altcoin season here? 🤨 How to observe the altcoin season? Here, I will share a super simple way to determine if the altcoin season has arrived! Please give me some support, like, follow, and share!
Since the cryptocurrency market improved after the U.S. presidential election (November 6th), most coins have risen along with Bitcoin's new highs, while the real explosive growth of most altcoins occurred after November 23rd, which is what we call the altcoin season. Clues can also be seen from the altcoin market capitalization line chart above. Capturing the altcoin market is every trader's pursuit, but how can it be achieved?
How can traders simply observe the performance strength of mainstream and altcoin varieties? Therefore, I found that the historical data of mainstream/altcoin fluctuations developed by the blave data website (L1 advanced data, hereinafter referred to as M/A) is very suitable for helping traders easily discover whether the market is in a mainstream or altcoin market (the green area indicates that mainstream coins perform better than altcoins, and the red area is the opposite).
From the first M/A chart, it can be observed that after November 23rd, the premium of mainstream coins over altcoins in the M/A chart turned from positive to negative (from green to red), indicating that the altcoin market has begun. Prior to that, the green area had already started to shrink (green bars diminishing), and then the altcoin explosive market erupted. 🚀
In addition to understanding the strength of mainstream and altcoins through simple green-red conversions, we can also observe the continuity and reversal of the market through changes in the green-red areas. For example, in the second M/A chart, it can be observed that during the altcoin market phase (red area), there were signs of shrinkage in the red area starting from early December, becoming more evident after December 7th, thus serving as a warning signal that altcoins are resting! 🚨
Finally, on December 10th, the premium of mainstream coins over altcoins turned positive (from red to green), and then BTC surged to a new high of 108k, while altcoins began to weaken. Do you understand it now?! I hope it brought some inspiration! Currently, M/A has turned green again... What do you think will happen?! 😎
Data source: blave.org
#BinanceAlphaAlert #altcoins
