ALTCOIN SEASON

Discussion • 2021/01/18 • ໂດຍ

Bitcoin has been relatively quiet for the last couple of days, and this, in turn, is an advantage for altcoin, giving them the time they need to breathe and also the time to take advantage of the market.
We have already begun to see some pumps occurring, and we have also observed significant gains for a lot of altcoins; the mid caps, the low caps, they are all moving, but it has not gone completely crazy yet.
It seems like an altcoin cycle is about to begin; Bitcoin has been ranging since it hit its new all-time high, finally giving altcoins room and opportunity, but we also have to realize that Bitcoin has always been known to be the type to have big comebacks. If this occurs, it will not be in favor of the altcoins, spoil the party for them. For example, if one of the multi-billionaires we have in this world wakes up and decides to purchase a billion-dollar worth of Bitcoin, it will entirely shoot the bitcoin price high.

The Bitcoin Fear and Greed index fell for the first time in a very long time; if we are sincere, this is relatively healthy to see. Bitcoin is indeed going through a consolidation phase and getting ready for its next big move.

The opportunity for altcoins is already here, and Bitcoin is currently seen to be falling in its dominance. The price of Bitcoin during this period can either rise, fall, or start flat.

The chart above explicitly elucidates the usual flow of money during crypto cycles in the crypto market. Everything in the market has been moving up lately.
The last bar, the one in red, shows the amount of money flowing down to smaller altcoins. This is what is referred to as Altcoin Season; this is where we start to see the big tops' blow-off captures; it now becomes something like a cycle into a broader cycle. The mid cap and low cap coins begin to see significant gains; some gains turn out to be by 50%, some by 70%, some even by 100%, and this usually happens between a few days, sometimes, few weeks. When the market begins to pump, even the ones with the least value will pump also.
The market is still irrational, but this is the best time to buy up ahead of the significant gains which are expected to occur. It's best to buy them now that they are still cheap.