Altcoins are at the 'launch edge' stage

The index in the range of 40-45 generally indicates:

Bitcoin is strengthening its dominance, and altcoins are just beginning to react;

The market is starting to rotate from BTC to ETH and mainstream altcoins;

This is usually the starting point of the 'second phase of a bull market.'

The 'critical point' of capital rotation

When the altcoin index breaks through 45 or 50, a large amount of capital will flow from BTC and ETH to various altcoins;

Currently at 43, it indicates that the rotation is 'brewing' but has not yet reached the stage of 'full explosion.' You can understand it as: large funds are positioning themselves, the 'wind for altcoin season is about to rise,' but the wind has not yet reached every corner.

Looking back at history, in 2017, when ETH just broke through, mainstream altcoins were accumulating, and the altcoin index was at 40-45, and within 3 months, most altcoins increased tenfold. In 2020, when BTC reached a new high, the altcoin index was at 40-45. After a sideways movement of altcoins, the following month saw UNI, AAVE, and DOT soaring. At the beginning of 2024, the index fluctuated between 38-42, and soon ETH and SOL took off, triggering a meme craze.

So now at 43, it is a 'very sensitive' position. It is not the safest bottom area, but it may be the easiest launch point to miss.

Currently, the altcoin index at 43 means:

Capital is gradually flowing from BTC to ETH and mainstream altcoins, and the altcoin season is on the verge of a critical point. Once the capital sentiment completely shifts, altcoins may usher in a concentrated explosion.

As you know, every bull market has a keyword called:

'Waiting for altcoins to take off before getting on board? Then you can only stand guard at a high position.'