Altseason intensifies: Top 4 analyst signals to know when to take profits
The crypto market capitalization reached a record of $4 trillion in July. At the same time, Bitcoin's Dominance fell to 61.5%, the lowest level since April. These are clear signals that, according to analysts, confirm the official start of altseason.
The important question now is when investors should exit the market. Based on the ideas of experienced traders, this article outlines several key factors to observe.
Investors began to see gains in July
Most altcoin investors who started buying in June are likely seeing gains now. This is because the market capitalization of altcoins (TOTAL2) has increased by 44% since then, reaching $1.5 trillion.
Glassnode's proprietary indicator confirms the capital rotation towards altcoins starting in early July:
"Glassnode's Altseason Indicator was activated on July 9. This means that stablecoin supplies are expanding, capital is flowing into BTC and ETH, and, simultaneously, the market capitalization of altcoins is increasing — a structurally favorable environment for capital rotation," reported Glassnode.
Today, CryptoBubbles data shows a green market. Many altcoins have risen between 10% and more than 20%. However, history shows that the altseason of late 2024 ended in sharp declines.
Many altcoins fell between 50% and 90%. Many investors did not act quickly and watched their portfolios sink further into losses. Therefore, identifying when to take profits is as crucial as identifying when altseason begins.
The simplest and most widely used signal is the Altcoin Season Index. This index is commonly used to identify entry points. But when it reaches its upper limit, it also acts as a warning for the market as a whole.
Phase 1 is Bitcoin surpassing.
Phase 2 is Ethereum surpassing Bitcoin.
Phase 3 sees a rally of large-cap altcoins.
Phase 4 is when small-cap altcoins and memecoins rise, often signaling the final stage of altseason.