In the world of crypto assets, the term altcoin season refers to a period when altcoins (aside from bitcoin) experience larger price increases compared to bitcoin. Although there is no single signal that can confirm when the altcoin season will arrive, there are several indicators that have historically been strong clues.

How to Know When Altcoin Season is Approaching?

Here are five key indicators that can help you recognize the potential arrival of altcoin season:

1. Bitcoin Dominance Starts to Decrease

Bitcoin Dominance is the percentage of bitcoin's market capitalization compared to the entire crypto asset market. When this dominance decreases, it means altcoins are starting to gain a larger market share—a classic signal that altcoins are attracting attention.

2. Strengthening ETH/BTC Ratio

An increase in the ETH/BTC ratio usually indicates that investors are starting to shift from bitcoin to major altcoins like Ether (ETH). This can be an early signal of a market momentum shift from bitcoin to altcoins.

3. Increase in Mid- and Low-Cap Altcoins

When mid-cap and small-cap altcoins start experiencing significant price surges, this indicates that investors are looking for greater growth opportunities outside of major assets.

4. Surge in Altcoin Trading Volume

An increase in trading volume on altcoins widely can indicate a growing interest from traders and investors. High volume typically precedes large price movements in the short term.

5. The Return of Meme Coin Hype and Retail

Altcoin season is often marked by the return of hype from meme coins and greater retail participation. This phenomenon can be seen through social media activity, search trends, and market speculation on new or unconventional assets.

5 Strategies to Prepare for Altcoin Season

Facing the altcoin season, having a well-thought-out strategy is very important to remain rational and not be swept away by euphoria. Here are five ways you can do it:

Stay alert to narratives like ZK-rollups, AI + crypto, or Layer 2 (L2) solutions. Altcoins that are in a strong narrative trend often become the center of attention.

2. Set Entry and Exit Targets

Determining entry and exit targets beforehand can help manage risk and emotions. Use approaches like take-profit and stop-loss wisely according to technical and fundamental analysis.

3. Rotate from Large Cap to Small Cap

After major altcoins start to rise, investors tend to rotate into small-cap altcoins to seek higher potential returns. However, it should be noted that volatility is also higher in these assets.

4. Focus on Fundamentals, Not Just Hype

Filter projects based on strong fundamentals such as clear use cases, active development teams, and real adoption. Avoid just following temporary trends without understanding the underlying projects.

5. Secure Profits Before It's Too Late

The altcoin season can pass very quickly. Therefore, it is important to secure profits periodically, especially after significant increases. Consider swapping some profits into stablecoins or assets with lower volatility.

Monitor Altcoin Prices in Real-Time

To help you stay updated with market movements, you can monitor current altcoin prices at Binance coin price directory. This tool is very useful for price analysis and identifying emerging market trends.

Conclusion

Altcoin season can be a great opportunity for crypto traders and investors, but it is also full of risks if not approached with the right strategy. By understanding the key indicators and preparing well-thought-out steps, you can face this phase with more confidence and wisdom.

Always do your own research and use available analysis tools to make more informed decisions. Don't forget, staying objective and disciplined is the key to success in facing the volatility of the crypto market.