Why do altcoins typically surge in the middle and later phases of a bull market? There are a few key reasons behind this pattern:
Firstly, during the bear market and early stages of a bull market, many altcoin project teams operate on tight budgets. They need to cover monthly expenses and salaries, which often necessitates selling their coins regularly. This limits upward price movements during these periods.
Secondly, as the bull market progresses and large investors (whales) accumulate significant profits from #Bitcoin (BTC), some of this "hot money" flows into altcoins. This influx creates a bubble-like altcoin season, characterized by heightened excitement and substantial gains for these alternative cryptocurrencies.
Regarding strategies for navigating this market cycle:
1. Allocate your positions strategically: Before October 24th, consider a distribution of 50% in $BTC , 30% in $ETH /$SOL /#BNB , and 20% in popular altcoins.
2. As BTC completes its third wave by late October, adjust to 30% BTC, 40% ETH/SOL/BNB, and 30% in popular altcoins.
3. By the end of December, as BTC enters its peak phase, consider 30% in USDT for stability, 30% in ETH/SOL/BNB, and increase allocation to 40% in popular altcoins.
4. Expecting the altcoin season to wind down by March 25th, shift to a safer position with 90% in USDT and 10% in popular altcoins.
5. From April 25th onwards, reassess and adjust your positions based on market developments and personal goals.
These strategies offer stability during volatile times, but remember, to maximize gains, significant investments in altcoins may still be necessary. Despite past dips, anticipation of new highs in BTC and ETH remains pivotal as indicators for potential altcoin surges.
