The Anatomy of Altseason
Updated
Hello community,
The cryptocurrency market operates through discernible phases, each presenting unique dynamics as illustrated in charts.
Initially, during the Bear market phase, Bitcoin's dominance surges while prices of cryptocurrencies across the board decline. This phase is marked by pessimism and a general lack of confidence in the market. As the bearish sentiment persists, the distribution phase ensues, characterized by a continued downtrend in prices. However, amidst this decline, periods of stability emerge during accumulation, where investors gradually start acquiring assets at discounted prices, anticipating a reversal in the market sentiment.
Moving forward, the BTC UP phase signifies a shift in market dynamics as liquidity is injected, resulting in stabilized dominance levels for Bitcoin. Despite this stability, altcoins typically do not witness substantial price increases, as the focus remains on bolstering Bitcoin's value to sustain the overall market sentiment. This phase often highlights the interplay between Bitcoin's dominance and the performance of alternative cryptocurrencies.
As Bitcoin achieves its predetermined objectives, its dominance begins to wane, paving the way for the ascent of altcoins. During the Altseason phase 1, the total market capitalization of altcoins experiences growth, accompanied by a relative stabilization or modest uptick in Bitcoin prices. This period represents a transition where the market shifts its attention from Bitcoin to alternative cryptocurrencies, reflecting evolving investor preferences and market dynamics.
The Altseason phase 2 ushers in a wave of heightened market activity, characterized by aggressive trading and speculative behavior. Traders, colloquially referred to as sharks, enter the market with the aim of capitalizing on short-term price movements for profit. This period often witnesses rapid and exaggerated fluctuations in prices, commonly known as pump and dumps, as market participants vie for quick gains.
However, such fervent activity is typically short-lived, as unsustainable price movements give way to a renewed sense of caution and the anticipation of a new bear market phase, marking the cyclical nature of the cryptocurrency market.
Happy trading !
The cryptocurrency market operates through discernible phases, each presenting unique dynamics as illustrated in charts.
Initially, during the Bear market phase, Bitcoin's dominance surges while prices of cryptocurrencies across the board decline. This phase is marked by pessimism and a general lack of confidence in the market. As the bearish sentiment persists, the distribution phase ensues, characterized by a continued downtrend in prices. However, amidst this decline, periods of stability emerge during accumulation, where investors gradually start acquiring assets at discounted prices, anticipating a reversal in the market sentiment.
Moving forward, the BTC UP phase signifies a shift in market dynamics as liquidity is injected, resulting in stabilized dominance levels for Bitcoin. Despite this stability, altcoins typically do not witness substantial price increases, as the focus remains on bolstering Bitcoin's value to sustain the overall market sentiment. This phase often highlights the interplay between Bitcoin's dominance and the performance of alternative cryptocurrencies.
As Bitcoin achieves its predetermined objectives, its dominance begins to wane, paving the way for the ascent of altcoins. During the Altseason phase 1, the total market capitalization of altcoins experiences growth, accompanied by a relative stabilization or modest uptick in Bitcoin prices. This period represents a transition where the market shifts its attention from Bitcoin to alternative cryptocurrencies, reflecting evolving investor preferences and market dynamics.
The Altseason phase 2 ushers in a wave of heightened market activity, characterized by aggressive trading and speculative behavior. Traders, colloquially referred to as sharks, enter the market with the aim of capitalizing on short-term price movements for profit. This period often witnesses rapid and exaggerated fluctuations in prices, commonly known as pump and dumps, as market participants vie for quick gains.
However, such fervent activity is typically short-lived, as unsustainable price movements give way to a renewed sense of caution and the anticipation of a new bear market phase, marking the cyclical nature of the cryptocurrency market.
Happy trading !
Note
Today, we are witnessing the initial distribution phase of BTC. As was the case on December 28, 2020, it is anticipated that the price of BTC wil experience a slight increase, while Altcoins will undergo significant pumping. It's important to note that the altcoin season is typically short-lived, as the Greed Index rises rapidly, compelling holders to sell their coins due to the substantially high volume.Note
Altseason phase 1 officially started.Note
Don't be fooled by analyst's negativity !The majority of strongest Altcoins projects (that didn't make huge pumps yet) realized at least +10% from their recent peaks.
Note 1 : the starting of the Altseason will not be spotted until we reach the new ATH in Altcoins.
Note 2 : Not all the Altcoins will make huge pumps during Altseason. Choose wisely your projects.
Note 3 :This Altseason will not last long ;)
Happy trading !
Note
Some of you asked me : Why I talk so much about BTC dominance?Well, think of it as a roadmap for where the liquidity in crypto is flowing.
When there's a distribution phase happening, people are getting out of altcoins fast, so BTC's dominance goes up because bitcoin is still seen as a safer bet than other cryptos.
During the accumulation phase, investors allocate most of their money into bitcoin. This boosts BTC's dominance even more.
When BTC's dominance is high, it means there's less bitcoin available, so if someone makes an agressive buy, it can really explodes UP the price.
Basically, BTC dominance tells us how "saturated" the market is with bitcoin. And when BTC has had a big pump, investors start investing in altcoins again because they seem like a good bet. And they're using the profits they made from bitcoin to do it.
N.B : Theses are a really valuable information I give to my followers , so remember to boost the post.
Note
As I mentioned over a month ago, Altseason has begun. Altseason has several phases. The first phase is when meme coins surge, with some gaining over 10x their value in 2 months. The second phase is when blockchain coins increase up to 5x from their low point before correcting. Now, we are in a strong consolidation phase for all altcoins market.As I explained in many posts on my Tradingview account, not all altcoins will have significant gains because the market structure has changed. Each Altseason is different, but they all feature strong, euphoric surges. This Altseason is crowded with coins, so it's normal for some to receive only a small amount of liquidity or none at all.
Happy trading!
Note
We cannot deny that last month (June) some coins saw huge increases (like BOB, TON, KASPA, etc.). So, if your coins didn't rise, it doesn't mean altseason hasn't started yet!As mentioned before, each altseason is different. Some coins might increase by 10 times, others by 2 times, and some only by 10% (some may not move at all). Additionally, the creation of hundreds of new altcoins each day dilutes liquidity, so even strong projects get a smaller share of it. Futures trading also makes trading ranges more aggressive, leading traders to think we're in a bear market even if BTC reaches 73k!
Moreover, traders nowadays understand the crypto market well and know when to buy and sell. This prompts market makers to make aggressive moves to push traders to sell their coins, so they can control the prices and distribute at the levels they want.
Note
Some followers asked me : Can you summarise what do we want to see in theses 3 charts ? Answer :
- BTC price relatively stabilise within trading range
- BTC dominance decreases
- Total 3 (altcoins except BTC and ETH) going up
Explanations :
Profits from BTC will flow into altcoins but price of BTC will not decrease due to traders quitting altcoins after the savage manipulative dumps, and heading to BTC to invest.
BTC Investors will finally find liquidity to distribute without crashing BTC prices.
Can you believe how much costs theses information ? You have no idea :)
Note
Despite all the deep corrections the market witnessed during theses months , and despite today's market negativity and boredomness, the altcoins made serious gains from April till now.Strong coins :
- ETH : +10%
- SOL : +20%
- TON : +25%
- XRP : +25%
- TRON : +18%
- MONERO : +36%
Meme coins :
- BONK : +17%
- PEPE : +72%
- TURBO : +930% !
...
So if you think the altseason has not started yet because your coins did not make 10x , theses % gains tends to disagree.
Note
BTC dominance is now at strong resistance level 57%. The correction in the dominance will make some noticeable pumps in strong coins that didn’t perform well during the first strong pumps.As well as you dtart to see the pumps, Take your profits at multiple levels and don’t be greedy . Remember: you can’t buy the rock bottom and sell the all time high.
Happy pumping !
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