In the cryptocurrency market, there are periods when Bitcoin dominates all attention and others when altcoins — all cryptos that are not BTC — start to steal the spotlight. These moments are known as altcoin seasons.
During these phases, it is common to see medium or small tokens multiplying in value in a short time. The question is: how to identify if we are already living this moment? And, more importantly, how to position oneself to take advantage of the opportunities without exposing to unnecessary risks?
In this article, we will present all the relevant points so that you can take advantage of the next altcoin season in the most efficient way possible.
How to know that the Altcoin Season has begun
Decline in Bitcoin's dominance
One of the first signs that traders observe is the decline in Bitcoin's dominance, which represents the share of BTC relative to the total value of the cryptocurrency market. When this indicator falls, it means that investors are directing capital to altcoins in search of higher returns.
If, for example, the dominance drops from 55% to 47% in a few weeks, that is a clear sign that money is migrating to other assets.
ETH/BTC as a gauge of risk appetite
Another widely used indicator is the ETH/BTC pair. When Ethereum starts to appreciate against Bitcoin, the market shows a willingness to take on more risk, as it moves away from the more conservative coin towards an asset that tends to drive the rise of other altcoins.
The ETH is usually the first to gain strength before the movement spreads to the rest of the market.
The time for mid caps and small caps
After this initial movement, medium and low-cap coins start to shine. Projects like Solana (SOL), Avalanche (AVAX), or Polkadot (DOT) are often the next to experience strong appreciation, followed by small caps, which carry higher risk but also the possibility of significant multiplications.
This phase is marked by high volatility: those who enter early can achieve significant gains, but those who delay end up buying at the top and run the risk of quick losses.
Trading volume soars
Another fundamental aspect is to observe trading volume. When coins outside the top 10 start moving billions of dollars per day on exchanges, this indicates new liquidity entering the market, which increases the ease of opening and closing positions. This movement is noticeable both on local exchanges and on global platforms that serve Brazilians, such as Binance.
The boom of meme coins
Finally, no altcoin season cycle would be complete without the explosion of meme coins. Tokens like Dogecoin (DOGE), Shiba Inu (SHIB), and others that emerge from internet trends tend to surge during this phase. This movement is fueled by the hype of social media and the massive entry of retail investors.
While the initial points indicate a possible arrival of an altcoin season, for more attentive traders, this last point may sound like a warning that the cycle is in its final phase and it’s time to think about taking profits.
5 ways to prepare for the Altcoin Season
Identify rising narratives early: each altcoin season is driven by themes that gain strength in the market, as has already happened with DeFi, NFTs, and play-to-earn games. Currently, narratives linked to artificial intelligence or real-world assets (RWA) may be the next engines of appreciation. Being attentive from the start increases the chances of capturing good opportunities.
Define clear entry and exit points: the volatility of altcoins requires discipline. Set profit targets and take partial sales as prices rise, in addition to maintaining defined stops to protect capital during abrupt falls. This way, you avoid letting greed turn gains into losses.
Rotate among different types of assets: a common strategy is to start with more established coins, such as ETH, BNB, or SOL, and as gains appear, migrate part of the profit to medium-cap assets. If the market remains hot, a small portion can be directed to small caps, balancing risk and return.
Look beyond the hype: not every coin that is rising on social media has solid fundamentals. Check tokenomics, monitor developer activity, analyze community engagement, and see if there is real use for the token. This filtering helps avoid projects that disappear after the season.
Ensure profits before the end: every altcoin season ends, and signs of exhaustion usually include the resumption of Bitcoin's dominance and a drop in trading volumes. Gradually realizing profits, without waiting to hit the top, is essential to avoid giving back gains to the market.
Practical summary for Brazilian traders
In practice, the signals of an altcoin season can be identified sequentially.
First, Bitcoin's dominance starts to decline, showing that capital is migrating to other cryptos.
Next, the ETH/BTC pair gains strength, which serves as an alert that the market is willing to take on more risk.
Soon after, medium and low-cap altcoins begin to accelerate, while trading volume soars across various exchanges, bringing more liquidity.
The final stage usually comes with the return of meme coins and retail hype, a moment when taking profits becomes essential.
Following this logic, combining observation of signals with well-defined strategies can help take advantage of the cycle without exposing oneself recklessly.
Turn on the radar for signals and follow your plan with discipline
The altcoin season is one of the most exciting phenomena in the crypto market, but also one of the most treacherous. For Brazilian traders, it offers the chance to quickly multiply capital, but requires market reading, patience, and discipline.
Observing indicators such as BTC dominance, the ETH/BTC pair, trading volumes, and retail hype is fundamental to identify the right moment.
Preparation involves rotating capital intelligently, securing profits before the end, and avoiding entering solely out of euphoria.
Those who treat the cycle as a strategic opportunity have a much higher chance of coming out stronger. On the other hand, those who let themselves be carried away only by enthusiasm risk repeating the classic mistake of buying at the top and selling at the bottom.
And you, have you ever stopped to think about all the aspects when it comes to Altcoin Seasons?
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