Alt Season is Right Around the CornerBitcoin dominance has been growing in the past few days as it outperforms the rest of the cryptocurrency market after the sharp drop last week. Many things are pointing towards Bitcoin continuing to outperform in the short term as we gear up for the next parabolic bull market.
However, alt season is very close and, once BTC confirms it's breakout towards 100k, a lot of the large caps like Ethereum and Solana will begin to go up very quickly. This is based on my cyclical analysis of alt seasons. To get a better idea of the cyclicality of cryptocurrency, Bitcoin, and alt seasons, check out my previous post which predicts the next parabolic rise in November:
An important thing to note when referring to alt seasons is that they don't last long (only a few months). So understand your timeframe when investing over the coming weeks. Another important idea is how money tends to flow during this period. It historically starts with Bitcoin breaking its all time high and beginning to rise. During this time, altcoins tend to underperform. But once BTC consolidates and begins to go sideways, that's when the rest of the market has time to catch up. In the chart I show 4 key points:
Bitcoin
This is when BTC makes a significant breakout whether that's from a significant resistance level or its ATH. This is where BTC is outperforming 99% of the market.
Ethereum & Large Caps
BTC will begin to slow down and a lot of the major altcoins will see a big increase. This is where you can find great trade setups on the BTC pairs like ETHBTC, SOLBTC, etc.
BTC Consolidates
BTC will start to go sideways, cooling off and preparing for its next rise. From here you might see some pumps in mid-low caps. These tend to be volatile and hard to predict.
Small caps - Quick and fast
As BTC continues to go sideways, some small caps might experience quick pumps in price. Similarly, these tend to be even more volatile and hard to predict.
After this, the pattern repeats back up to Bitcoin until we reach a peak and begin a new bear market.
The cryptocurrency bull market is brewing up and alt season can offer some incredibly profitable opportunities. Plan ahead, and don't overtrade.
