Shanzhai Season Plain Language Interpretation
Shanzhai Season is when alternative coins start to gain momentum. To determine if the Shanzhai Season has arrived, pay attention to these key points:
First, alternative coins need to break through the price peak from March, and further, it’s best if they can surpass the historical high of 2021. During this process, funds will first flow into Bitcoin, causing Bitcoin to rise; at this time, alternative coins may be 'bled out,' and their prices will drop. But when funds flow out of Bitcoin and into alternative coins, they will likely surge.
I checked the top 100 tokens by market capitalization and found that only half broke through March's price peak, and even fewer, only 15, surpassed the historical high of 2021. This indicates that while Bitcoin continues to reach new highs, most alternative coins are still 'bottoming out.'
Is the Shanzhai Season really an opportunity? How to choose alternative coins? I believe as long as the project is still operational, and the codebase and social media are still being updated, there is a high probability that institutions are watching it and may already be controlling it. Once the timing is right, such alternative coins can multiply several times in just a few days, even releasing years of pent-up potential all at once.
However, the current market sentiment is still bearish; everyone is thinking about recouping losses. Bitcoin has risen, but the assets in wallets have shrunk.
To determine if the Shanzhai Season has truly arrived, look at several indicators:
Shanzhai Index: Check how many of the top 50 alternative coins have outperformed Bitcoin in the past 90 days. If most have performed better than Bitcoin, then it’s Shanzhai Season.
BTC Dominance Rate: When funds flow into Bitcoin, the dominance rate of Bitcoin rises, and alternative coins fall; when funds flow out of Bitcoin, alternative coins absorb the liquidity and may surge.
TOTAL 2: This indicator looks at the total market capitalization of the top 125 alternative coins excluding Bitcoin, reflecting the flow of funds into alternative coins.
ETH/BTC Exchange Rate: Funds generally flow from Bitcoin to Ethereum first, and then from Ethereum to alternative coins. Therefore, when the Ethereum exchange rate strengthens, it’s a good time to pay attention to alternative coins.
Opportunities are fleeting, and corrections are imminent. Accumulate and lay out spot positions; the huge profits from alternative coins are waiting for you! Doubling is not a dream; follow me closely, leave a comment to share your insights, and let’s participate in the bull market feast together!
