The
altcoin
season,
a
name
which
represents
a
period
where
the prices
of
cryptocurrencies, besides
Bitcoin,
rise
rapidly,
has
become
synonymous
with
the
crypto
market. Despite
predictions
that
the
altcoin
season
was
coming,
it
is
yet
to
begin
even
after

the
Bitcoin
price
hit
a
new
all-time
high.
However,
this
incredibly
bullish
period
may
not
be
too
far
off
as
one
of
the
most
popular
analysts
in
crypto,
Capo
of
Crypto,
points
out
an
interesting
correlation
between
the
current
cycle
and
the
2020
cycle.

 

Capo
Of
Crypto
Finds
Similarities
Between
2020
And
2024

Crypto
analyst
Capo
of
Crypto
took
to
X
(formerly
Twitter)
to
announce
that

an
altcoin
season
might
be
close
due
to
current
market
trends
resembling
those
from
2020
before
the
altcoin
season
began
in
the
last
bull
run
cycle.

The
crypto
analyst

quoted
his
analysis
from
2020,
where
he
explained
why
he
believed
that
the
altcoin
season
was
coming.
In
that
2020
thread,
Capo
points
to
a
number
of
factors,
such
as
Bitcoin’s
dominance
reaching
resistance,
Bitcoin
price
reaching
a
bottom,
and
general
sentiment
being
bullish,
meaning
a
higher
risk
appetite
among
crypto
investors.

At
the
time,
the
Bitcoin
price
had
bottomed
in
December
2020,
before
the

altcoin
rally
began.
If
this
is
the
case,
then
it
means
the
analyst
believes
that
the

Bitcoin
decline
is
over.
Also,
at
this
point,
investors
could
be
getting
ready
to
rotate
profits
from
BTC
into
altcoins,
speaking
the
start
of
another
altcoin
season.

Moving
on,
the
analyst
also
points
out
that
the
Bitcoin
dominance
of
the
market
was
nearing
resistance.
In
2020,
this
level
was
around
72-75%.
However,
this
time
around,
it
seems
the
resistance
level
lies
around
55-60%
dominance
for
Bitcoin.

 

At
the
time,
Capo
pointed
out
that

the
Bitcoin
dominance
breaking
down
and
the
“OTHERS”
dominance
doubling
from
its
position
at
the
time
would
mark
the
start
of
the
altcoin
season.
At
the
time
of
writing,
the
OTHERS
dominance
is
sitting
at
9.97%,
according
to
data
from
TradingView.
But
if
Capo’s
2020
analysis
were
to
be
applied
here,
the

dominance
would
have
to
rise
to
around
20%
to
kickstart
the
altcoin
season.

What
To
Do
In
An
Altcoin
Season

Altcoin
seasons
are
important
to
the
crypto
market
given
that
it
gives
the

opportunity
for
smaller
altcoins
to
rally
and
make
gains
for
their
investors.
However,
during
this
time,
a
lot
of
pump
and
dumps
happen,
which
would
lose
investors
money
if
they
are
not
careful.

Like
Capo
pointed
out
in
the
2020
X
thread,
while
a
lot
of
altcoins
will
see
massive
rallies,
“What
is
shit
remains
shit.”
As
a
result,
the
crypto
analyst
cautions
investors
that:
“This
time
you
will
have
to
choose
wisely.
Not
all
the
altcoins
will
have
crazy
returns.”

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

Recommended Crypto Services, Products and Strategies: