After falling 188 days and a 55% correction from above, altcoins, Bitcoin hit a new all-time high (ATH) of $ 67,276 less than 24 hours ago. The “turnaround” took place for exactly 3 months, with BTC hitting a cycle low of $ 29,200 on July 20, 2021.
Since then, the market in general has gradually recovered on the charts. After ADA and SOL, Bitcoin has finally established its own new ATH.
With that in mind, the story of the upcoming altcoin season makes even more sense. However, before investors invest money in mid- and small-cap investments, the following market signals should be observed for maximum efficiency and return.
Altcoin Seasonal Index | The source: Blockchain center
Bitcoin Mastery Chart – Chasing A Reversal?
In general, the altcoin season goes as follows:
During the bearish phases of the market cycle, dollar holders increase their BTC accumulation.
– Bitcoin moves parabolically, crowds pour into BTC. Altcoins will soon fall in price versus BTC.
– Bitcoin is consolidating at the top, altcoins are starting to recover. Then altcoin accumulation starts buying BTC before moving parabolically.
– When the new entrant rate slows, Bitcoin will peak and it will be time to sell altcoins to reinvest the profits.
– Depending on the dynamics of BTC, several old seasons can take place in one cycle.
The capital outflow from Bitcoin to Altcoins can be seen on the Bitcoin Dominance Diagram (BTC.d).
Source: trade view
Whenever the BTC.d chart is pointing up, the trend is particularly towards Bitcoin and more capital is flowing in its direction. However, in the current bull cycle in 2021, the 47.75% mark is a turning point, as the graph illustrates.
With Bitcoin hitting $ 67,000, the chances are high that BTC dominance will break the 47.75% mark. As a result, it may take another 2-4 weeks for the market to confirm the arrival of the altcoin season.
Conversely, if BTC.d declines from current levels on the weekly chart and Bitcoin consolidates in the USD 62,000- $ 66,000 range, capital will flow into altcoins. This will improve the chances of an altcoin rally.
It’s still early to predict altcoin season as Bitcoin has just hit a new ATH. While BTC is expected to continue to grow on the chart over the next few weeks, many altcoins will stall before bitcoin’s momentum shifts onto them.
All in all, monitoring the BTC.d chart is essential, especially if the entry points for altcoin need to be well timed in volatile market phases.
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According to AMBCrypto