Many traders wonder if we are entering altcoin season. This term refers to those periods when cryptocurrencies other than Bitcoin (BTC) start to yield superior returns and attract market attention.
Here are 5 key indicators to identify it and 5 practical tips to prepare yourself.
You can check the price of the Altcoins at any time by clicking here
📊 How to know if it’s altcoin season
Bitcoin's dominance starts to fall
When the market capitalization percentage of Bitcoin decreases, it means that more capital is flowing into altcoins. This is often one of the first signs.
The ETH/BTC ratio starts to rise
Ethereum (ETH) usually sets the pace for altcoins. If the ETH/BTC pair strengthens, it indicates that altcoins are gaining ground against BTC.
Recovery of mid and low cap coins
When not only large ones (like ETH, BNB, or SOL) rise, but also smaller projects, it is a strong signal of altcoin season.
Increase in trading volume in altcoins
If you see many altcoins starting to move more volume on exchanges, it means that traders are paying more attention to these coins.
Return of meme coins and retail hype
Interest in meme tokens or community-driven projects usually appears in the advanced phases of altcoin season, showing that the market is in full euphoria.
🛠️ 5 ways to prepare for altcoin season
Identify trends in advance
Follow indicators like BTC dominance or the ETH/BTC chart. The sooner you detect the change, the more options you will have to take advantage of it.
Set clear entry and exit goals
Define in advance at what price you plan to buy and sell. This helps avoid emotional decisions when the market becomes very volatile.
Rotate from large caps to mid and small caps
Normally, the flow starts in BTC, moves to ETH, and then to smaller altcoins. Adjust your portfolio according to the phase of the cycle.
Focus on the fundamentals, not just the hype
Even though the market is filled with rumors and FOMO, prioritize projects with solid technology, an active community, and real use cases.
Secure profits before the music stops
Altcoin season doesn’t last forever. Consider taking partial profits as the coins rise, to protect your gains.
🎯 Conclusion
Altcoin season can be very profitable, but it also brings high volatility. Staying informed, planning ahead, and maintaining discipline are key to not getting trapped when the excitement fades.
If you notice that BTC's dominance is decreasing, ETH is gaining strength, and mid and small cap altcoins are starting to rise, you might be facing an opportunity.
Remember: it's better to exit with moderate gains than to wait for the perfect peak and end up with losses.
#TradingCripto #Criptomonedas #TradingParaPrincipiantes #InversionesCripto #CriptoEducación