Key metrics to anticipate Altseason
1. Bitcoin Dominance (BTC Dominance)
What it is: The proportion of the total cryptocurrency market represented by Bitcoin.
What to observe:
A drop in dominance indicates that altcoins are gaining more market share.
Values below 45%-40% have historically coincided with Altseasons.
Where to check it: On platforms like TradingView or CoinMarketCap (BTC Dominance section).
2. Altcoin Season Index
What it is: An indicator that shows whether the market is in Bitcoin Season or Altcoin Season.
How it works: If more than 75% of the top 50 cryptocurrencies outperform Bitcoin over 90 days, we are in Altseason.
Where to see it: Blockchain Center - Altcoin Season Index.
3. Capital flows (Bitcoin to Altcoins)
What to observe:
Typically, money flows from Bitcoin → Ethereum → Large Altcoins → Small Altcoins.
Track volumes and movements in Ethereum (ETH), which often leads the flow to other altcoins.
4. Market sentiment (Fear & Greed Index)
What it is: A metric that measures the overall market sentiment.
What to observe:
During an Altseason, the market tends to be in "Greed" or "Extreme Greed".
Where to check it: Alternative.me - Crypto Fear & Greed Index.
5. Dominant narratives and volume on social networks
Specific altcoins often spike due to popular narratives like DeFi, AI, or Metaverse.
Use tools like LunarCrush to measure the social impact of certain projects.
Practical strategies to prepare yourself
1. Identify altcoins with solid fundamentals
Look for projects with real use cases, good teams, and active communities.
Popular categories:
Ethereum Layer 2s (Optimism, Arbitrum)
Interoperability (Polkadot, Cosmos)
DeFi and Liquidity (Uniswap, AAVE)
AI and blockchain (Fetch.ai, Ocean Protocol).
2. Create a balanced portfolio
Diversify between:
Large altcoins: Ethereum, Binance Coin.
Medium altcoins: Solana, Avalanche.
Small altcoins: Tokens with lower market cap but growth potential.
3. Use technical analysis to detect entries
Key tools:
RSI (Relative Strength Index): Identifies overbought or oversold conditions.
Volume and EMA (Exponential Moving Average): Confirms trends.
Ideally, enter during consolidation periods and accumulate before explosive moves.
4. Manage risk
Do not invest more than 10%-20% of your total portfolio in small or risky altcoins.
Set clear exit points and use stop-loss.
5. Keep a close eye on regulations
Regulatory changes can impact specific altcoins more than Bitcoin.
Recommended tools
TradingView: Technical analysis and custom alerts.
CoinMarketCap / CoinGecko: Price and market cap tracking.
Glassnode / CryptoQuant: On-chain analysis (money flows between Bitcoin and altcoins).
LunarCrush: Social sentiment of projects.
