The altcoin season is a cycle in which, after a stage dominated by Bitcoin, alternative cryptocurrencies (altcoins) experience significant price movements and volatility. If you are a trader, investor or simply a Web3 enthusiast, recognizing the first signs will give you a competitive advantage.
1. Bitcoin dominance falling
Bitcoin dominance measures Bitcoin's market share relative to all cryptocurrencies. When it falls from key levels—for example, from 45% to 40%—it usually means that capital is shifting to altcoins. This flow is explained because investors are looking for higher returns after a period of consolidation in BTC.
Why it matters: Reduces the risk of entering projects without momentum.
Where to see it: On TradingView under the ticker BTC.D, where you can follow Bitcoin's dominance in real time or on CoinMarketCap.
2. ETH/BTC in bullish phase
The ETH/BTC pair measures how many satoshis a $ETH costs. A bullish RSI in this market suggests greater appetite for Ethereum-based projects (DeFi, NFTs, DAOs). When the ratio exceeds historical resistances (for example, 0.08), it is an indication of relative strength of ETH.
Technical indicator: Moving average crossover (50 MA vs 200 MA).
Advantage: Identify capital rotations before they reach layer 2 altcoins.
3. Rally in mid and low-caps
Mid-cap ($100M–$1B) and low-cap (< $100M) coins tend to predate blue-chip projects. If you see +20% rallies in a few sessions, it is a sign that liquidity has not yet dissipated.
Practical example: A gaming altcoin rises from US$0.05 to US$0.07 in three days. This catches retail FOMO.
Caution: High volatility spikes can lead to sharp corrections.
4. Trading volume on the rise
Increasing volume confirms that it is not a small isolated pump. Look for sustained increases of +50% in altcoins, and even more if they occur on highly liquid exchanges like Binance.
How to measure it: Compare the volume of the last 24 hours with the 7-day average.
Note: False positives can occur in tokens with low liquidity.
5. Return of the hype: meme coins and retail speculation
Nothing captures market sentiment better than a viral meme coin. When X threads, TikToks, or forums like Reddit start, get ready for an increase in speculative capital.
Social signal: Increase in mentions and searches on Google Trends.
Risk: Much of the volume may come from speculative traders, not real adoption.
5 ways to prepare for altcoin season
Before rushing into buying altcoins blindly, it is essential to have a solid plan. This guide offers you five key steps to structure your strategy, manage risks, and make the most of the opportunities that altcoin season brings.
1. Identify emerging narratives early
Big trends mark where capital will flow. Scan social networks and specialized forums to detect key themes: DeFi 2.0, gaming on-chain, decentralized AI, on-chain privacy infrastructure...
2. Set entry and exit goals
Volatility is both friend and foe. Define entry points at clear supports and exits at previous resistances or Fibonacci levels (e.g., 38.2%, 61.8%). Automate orders on Binance to avoid impulsive decisions, although remember that trading tools involve risks and you should understand how they work before using them.
3. Rotate capital from large to small capitalizations
Consider diversifying your portfolio first with consolidated assets like BTC and ETH before exploring altcoins. When the indicators show an upward momentum, allocate between 10% and 20% to mid-capitalization altcoins. If they confirm a rally, transfer an additional portion to lower capitalization projects, allowing you to scale profits while controlling risk.
4. Analyze fundamentals, not just hype
Evaluate the team, study the roadmap, analyze the tokenomics, and review the strategic alliances. Those projects with solid use cases and collaborations with prestigious organizations tend to better withstand market corrections.
5. Secure profits before the party stops
Part of the strategy is to make partial sales—for example, one part at the first resistance and another at later levels—using trailing stops to protect profits. These suggestions do not constitute financial advice; consider consulting official sources or a professional before implementing trading tactics. This protects your investment if the market turns around.
"The key is to balance audacity and discipline: dare to enter before the crowd, but don't forget to secure profits."
Keep constant track of altcoin prices in the Binance Price Directory.
Tell me!
Which of these signals do you apply in your strategy? Share your experience, leave your comment on how you are preparing for this alt-season.
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Note: This article should not be considered financial advice. Always do your own research and make informed decisions when investing in cryptocurrencies.
