With Bitcoin breaking the $100,000 barrier for the first time since last February, some wonder when it will be the turn of alternative coins.
Between Bitcoin's previous rise and the current rise, we have not seen significant improvement in Altcoins, so this matter needs clarification and more study.
In this article, we will delve into this question and answer it clearly.

How does Altcoin season start?

For a long time, the prevailing belief in the market was that the market cycle goes as follows:
- Bitcoin is rising in price
- Bitcoin dominance in the market is increasing
- Altcoin dominance is decreasing
- Then Bitcoin starts to correct and stabilize after the peak
- Then Bitcoin dominance begins to decline
- Then Altcoin dominance starts to rise

This attached chart below is very famous in the cryptocurrency community titled 'The Road to Altcoin Season,' as it clearly explains this cycle.

Although this theory was indeed a reality in the market during previous cycles, this cycle has not fully realized this theory.
After Bitcoin previously reached a peak, liquidity did not flow to Altcoins, but rather to meme coins, which disrupted this theory because it created another path for liquidity after Bitcoin's correction.
However, despite the Altcoin season theory not achieving its result, it still stands until proven otherwise, at least until the end of the current Bitcoin cycle in 2028.

When does Altcoin season start?

There are many indicators to study this point, but in my opinion, the simplest is the CMC Altcoin Index.

The idea behind the Altcoin Index developed by Coinmarketcap is that it measures the performance of the top 100 coins in terms of market capitalization compared to Bitcoin.
In this way, you have a clear reading of the real Altcoin market, away from other worthless coins.

To know whether we are in Altcoin season or Bitcoin season, the index gives a number that reflects how many of the top 100 coins have outperformed Bitcoin in a 90-day range.

The index gives you the number, and based on this number, you can determine whether we are in Altcoin season or not.

Meaning:

  • If the index number is below 25, we are in a complete Bitcoin season.

  • On the contrary, if the index number is above 75, we are in the Altcoin market.

  • As for between 25 and 75, this is the gray area where the discussion takes place.

For example, currently the index number is 37, which means we are not at the depths of the Bitcoin market, but we are still far from the Altcoin season.

In my opinion, we cannot say that we are approaching Altcoin season before the Altcoin Index exceeds 50.

How do you prepare for Altcoin season?

One of the most important points that some neglect is that once Altcoin season begins, most coins will have already achieved significant increases, and some will have even reached their peak.
Therefore, it is not correct to wait for the Altcoin season to start your investment; rather, you should prepare yourself in advance and position yourself in coins that you see have a good future.

If you are a beginner in the market, it is difficult to predict the bottom of a coin or analyze when it will rise, so it is preferable to diversify your entry into the coin, and the easiest way to do this is to use one of the automated trading tools for Binance.
You can set an investment plan through it and let the bot invest on your behalf.
You can learn more details about Binance services in this area from this page.