The market capitalization of the cryptocurrency market reached a record level of 4 trillion dollars in July. At the same time, Bitcoin's dominance dropped to 61.5%, the lowest since April. These are clear signals, according to analysts, confirming the official start of the altcoin season.
The important question now is when should investors exit the market. Based on insights from experienced traders, this article outlines several key factors to monitor.
Altcoin investors began to see profits in July.
Most altcoin investors who started buying in June are seeing profits now. This is because the market capitalization of altcoins (TOTAL2) has increased by 44% since then, reaching 1.5 trillion dollars.
The Glassnode indicator confirms the capital rotation to altcoins starting from early July.
However, history shows that the altcoin season in late 2024 ended with sharp declines. Many altcoins dropped by 50% to 90%. Many investors failed to act quickly and watched their portfolios sink into larger losses.
For this reason, determining when to take profits is as important as determining when the altcoin season begins.
Analysts recommend two factors to determine the exit timing:
The altcoin season index is considered the simplest and most commonly used signal. This index is commonly used to determine entry points. But when it reaches its peak, it also serves as a warning for the broader market.
As of the time of writing this report, Coinglass reports that the index is at 49. When it reaches 70 to 100 points, investors are advised to take profits.
Other investors use technical analysis of the market cap for altcoins (TOTAL3) as a guide. Analysts like Peter Brandt and Greeny believe that TOTAL3 forms a cup and handle pattern.
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