Altcoins are all cryptocurrencies other than Bitcoin.
Altcoin season is a period when alternative cryptocurrencies or altcoins surpass bitcoin in the market.
This is due to market sentiment, product launches, improvements in blockchain technology, and increased applications by companies and financial institutions.
Advantages of Altcoins
Altcoins offer advantages such as faster transaction speeds, lower fees, improved privacy, or the inclusion of smart contracts.
During an extended bullish period for bitcoin, new buyers often switch to altcoins. Since this cryptocurrency is much cheaper than BTC, it’s just as easy to capitalize on its growth.
That is, when Bitcoin is growing, there is a high probability that altcoins will soon start growing as well.
Investors should remember that altcoin season is just a stage in the long-term market cycle of cryptocurrencies, and conditions can change as the market develops. It’s important to get on the altcoin season wagon in time!
How to Calculate the Upcoming Altcoin Season
To determine the start of the altcoin season, you need to keep an eye on a few key indicators such as:
- Declining bitcoin dominance
- Rising market capitalization of top altcoins
- Emerging trends in Web3 and blockchain technology
- Bullish sentiment in the broader economy
As soon as these are all seen in the market – get your money ready to trade. This is a chance for many traders to get rich on inexpensive assets.
History of Altcoin Seasons
Altcoin seasons are a recurring event in the cryptocurrency market. The dynamics of these seasons can be better understood by looking at historical examples and trends. Various factors such as bitcoin rallies, the dominance of Ethereum and the rise of new crypto narratives have shaped altcoin seasons over the years.
Bitcoin Rallies and Altcoin Seasons
Historically, Altcoin seasons often follow major Bitcoin rallies. As the price of Bitcoin rises, new investors are drawn to the market looking for opportunities in cheaper alternatives. This shift in attention causes Altcoin prices to rise.
During these periods, Bitcoin’s dominance — the percentage of total cryptocurrency market capitalization that Bitcoin represents — tends to decline as investors diversify into Altcoins. This creates a stronger market for Altcoins and further drives the growth of Altseason in crypto.
Ethereum’s Rise and Altcoin Value Growth
One of the major turning points in the history of altcoins was the rise of Ethereum. Ethereum introduced smart contracts and decentralized applications (dApps), expanding the use case for cryptocurrencies beyond just digital money.
This helped boost Ethereum’s price, and drew attention to altcoins that had similar functionalities or unique innovations in blockchain technology. The emergence of Ethereum as the leading altcoin set the stage for the subsequent altcoin seasons.
These seasons were driven by innovation within the Ethereum ecosystem and other similar projects. Ethereum’s success helped shift focus toward altcoin investments during altseason in crypto.
The ICO Boom and Initial Coin Offerings
Another significant event in altcoin history was the initial coin offering (ICO) boom of 2017. During this time, a large number of altcoins were launched via ICOs, attracting billions of dollars in investment. Many of these tokens experienced exponential increases in value, contributing to one of the most prominent altcoin seasons in history.
Although the ICO market later faced regulatory scrutiny and a number of failed projects, it marked an important chapter in the growth of altcoins and the rise of altseason in crypto.
Large-Cap Altcoin Growth
Large cap altcoins such as Ripple (XRP), Solana (SOL) and Cardano (ADA) have historically been the main drivers of altcoin seasons. These coins often experience significant growth during altcoin seasons as investors look for established projects with a track record of innovation and adoption. Their success can drive further bullish sentiment, causing smaller altcoins to rise in tandem.
Market Cycles and Sentiment Analysis
Market cycles play a key role in the occurrence of altcoin seasons. During prolonged periods of market growth and bullish sentiment, altcoins can experience large spikes in value, especially if the broader economy and blockchain technologies experience positive developments.
Sentiment analysis can also provide clues to upcoming altcoin seasons. Positive news about blockchain adoption, technological breakthroughs, or institutional investment can trigger the start of an altcoin season.
Strategies for Altcoin Season
The obvious trading plan would be to trade long, as market trends suggest this is the most likely strategy. Medium-term trading is considered to be the ideal approach for realizing gains. It is worth using different elements of technical analysis for entry points, such as support and resistance levels.
As can be seen from the chart above, there were at least 5 opportunities to open positions. Additionally, there were plenty of chances to “catch” significant price movements and then open a long position again.
However, it should be noted that special attention must be paid to risk management. If a trader trades with a multiplier, stop-loss orders will be a mandatory element of trading. It is recommended not to use large leverages (20x and above) for long-term trading.
Short-Term Trading Strategy
Another trading plan involves short-term trading. Here, traders are helped by other components of technical analysis, such as indicators. The obvious advantage of this trading plan is its flexibility. Traders can open both short and long positions.
The example above shows potential entry points for long and short positions for a short period of time (from 1 day to 1 week). Stop-loss orders are naturally placed slightly above or below local highs and lows, depending on micro market trends.
When Does Altcoin Season Start?
Newcomers to the crypto market often have a question: when does altcoin season start? The answer is very simple — when the BTC rate falls or consolidates, with BTC Domination (BTC.D) falling and cryptocurrency trading volumes growing — this is the full-fledged start of the altcoin season.
Just to be sure, is it Altseason? We need to pay attention to the performance of Altcoins. Most of the coins show higher yields than BTC, so traders pay more attention to speculative projects. This is the reason why there is an increased trading volume in Altcoins.
Profit-Taking During Altcoin Season
The moment of profit-taking comes when euphoria dominates the market. For this purpose, it is necessary to monitor market sentiment. When people who are far from the crypto market or trading start saying that it is time to buy cryptocurrency — at this moment it is worth significantly reducing longs and position sizing.
At the peak of the alt season, incremental profit-taking is present. At this point, you should monitor the actions of large and old wallets. If they fix positions, exit the market immediately.
When Is the Next Altcoin Season?
Different analysts and traders constantly talk about the beginning of the alt-season. However, you can really recognize it only after the fact. Namely, in the middle or at the end of the cycle.
When is the next altcoin season? According to the current information — the Altcoin season has already started, but it has not yet entered the active phase. No explosive returns have been seen in most sectors. Therefore, the formation of long positions is still actual.
Which Altcoins Are More Profitable To Trade?
Altcoins with the largest capitalization. The first ranks can be attributed to:
- Ripple (XRP)
- Solana (SOL)
- Cardano (ADA)
- Polkadot (DOT)
- NEAR Protocol (NEAR)
- Toncoin (TON)
All of these coins are available for trading on the Movo app. Start with the deposit — earn on the price jump.
The simple Movo app has gathered the most popular cryptocurrencies in one place. The interface is suitable for beginners in trading as well. Everything is simple — download, deposit, trade. Available multipliers allow you to increase your balance by 20 times. And earnings too 😉
Frequently Asked Questions
When will the altcoin season start?
Altcoin season starts when the BTC rate falls or consolidates, BTC Domination (BTC.D) falls and cryptocurrency trading volumes rise – this is the real start of altcoin season.
What is the Altcoin season index?
The Altcoin season index measures the relative performance of altcoins compared to Bitcoin over a specific period, usually 50 or 90 days.
What timeframes are typically used for Altcoin Season?
The Altcoin season index typically uses 30-day or 90-day periods to evaluate the performance of altcoins against Bitcoin.
Why is the Altcoin season index important for trading decisions?
The Altcoin season index is important because it helps investors understand market trends, allowing them to make more informed decisions about when to trade altcoins versus Bitcoin.
How can I take advantage of Altseason?
To take advantage of the altseason, research and diversify your altcoin portfolio, time your entries and exits using technical analysis, and consider investing early in pre-sale events. These strategies can help you maximize returns while managing risk during periods of high volatility.
What is the alt cycle in cryptocurrency?
The alt cycle refers to periods when interest and investment shift from Bitcoin (BTC) to altcoins, typically following BTC’s price cycles.
How does Bitcoin’s dominance affect the altcoin market?
When Bitcoin’s dominance peaks or starts to decline, traders often turn to altcoins, seeking higher returns in smaller-cap assets.
