In the crypto market, it’s not unusual for altcoins to temporarily fall in price when Bitcoin (BTC) is surging. This is a familiar part of the market cycle, especially when BTC takes the spotlight and surges in price. But don’t panic—this could be the start of a potential “altcoin season.”
Typical cycles when Bitcoin booms:
1️⃣ Bitcoin leads the game:
When BTC enters a major bull run, investors often focus their capital on Bitcoin, reducing the liquidity and appeal of altcoins. This causes altcoins to temporarily lose value.
2️⃣ Market adjustment:
Once Bitcoin hits a key resistance level or starts to plateau, capital flows tend to shift from BTC to altcoins. This marks the beginning of a recovery phase for altcoins.
3️⃣ Altcoins take off:
When Bitcoin stabilizes or corrects, BTC dominance often decreases, creating room for altcoins to thrive. If market sentiment remains positive, altcoins can enter a period of explosive growth.
So what do you need to do at this stage?
Track BTC Dominance: This metric shows how dominant Bitcoin is over the overall market. When BTC Dominance drops, it is usually a signal that capital is moving to altcoins.
Watch for support and resistance levels: With both Bitcoin and altcoins, key price zones will help you determine appropriate entry and exit points.
Patience is key: History has shown that after strong BTC rallies, altcoins often enter a stronger bull cycle. This is your opportunity to maximize the returns from your portfolio.
Why not panic?
Altcoins falling while BTC is rising does not mean failure. This is a natural market reaction. Once BTC cools down, altcoins can shine strongly, especially projects with good foundations and strong communities.
Stay calm and focus on the long term. Capital flows are always moving, and if you take advantage of this opportunity, the upcoming “altcoin season” could be a boom time for your portfolio.
