🤷Altcoin season, or "altseason" in English, is a period in the cryptocurrency market when altcoins (all cryptocurrencies other than Bitcoin) experience a significant increase in their value, often outperforming Bitcoin. It is a cyclical phenomenon that attracts a lot of attention from investors.
⭐TRIGGER FACTORS:
Several factors can contribute to an altcoin season:
👉Bitcoin Stability or Rise: Often, a period of stability or slight rise in Bitcoin precedes an altseason. This creates a climate of confidence and encourages investors to look for more speculative opportunities in altcoins.
👉New projects and innovations: Launching new technologies, platforms or innovative protocols in the altcoin ecosystem can generate excitement and attract capital.
👉Market Sentiment: A general sense of optimism and risk appetite in the cryptocurrency market can support investment in altcoins.
👉Capital rotation: Investors can withdraw profits from Bitcoin and reinvest them in altcoins, seeking higher returns.
⭐FEATURES:
🎅Increased Volatility: Altcoins are generally more volatile than Bitcoin, meaning their prices can fluctuate more dramatically, both up and down.
🎅Variable duration: An altcoin season can last a few weeks or even several months. There is no fixed duration.
🎅Variable performance: Not all altcoins perform the same during an altseason. Some may experience spectacular gains, while others may stagnate or even decline.
⭐HOW TO IDENTIFY IT?
There are several indicators that can suggest the arrival of an altcoin season:
😎Altcoin Season Index: This index measures the performance of altcoins relative to Bitcoin over a given period (usually 30 or 90 days). A higher score indicates a higher probability of an altseason.
😎Bitcoin Dominance Declines: Bitcoin dominance is the percentage of the total cryptocurrency market capitalization held by Bitcoin. A decline in dominance may indicate that investors are shifting to altcoins.
😎Technical Analysis: Analyzing price charts and technical indicators can help identify bullish trends in altcoins.
NOTICED:
Altcoin season is a time of opportunity, but also risk. It is crucial to do your own research and understand the projects before investing. Volatility is high and it is important not to invest more than you can afford to lose.